Volkswagen's supervisory board on Thursday approved a transformation plan that will include cutting another 50,000 jobs in its attempt to counter painful tariffs, overcapacity and aggressive Chinese rivals. The plan, the most extensive restructuring in Volkswagen's 89-year history, includes exploring alternatives for four German plants that will eventually run out of models during the next decade. Watch moreVolkswagen warns Germany's car-making industry is in jeopardy It also averts a major clash with unions by putting the scenario of an extraordinary general meeting on the back burner, a scenario that was considered by management to push through its plans against workers and Volkswagen's second-largest shareholder, Lower Saxony. The deal will result in a simplification of Volkswagen's conglomerate structure and limit the influence of the group's supervisory board – on which unions and Lower Saxony hold a majority – on key decisions. "This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide," CEO Oliver Blume said in a statement. Frankfurt-listed Volkswagen shares closed 7.9 percent higher following the news, reflecting relief over what sources said could have escalated into an unprecedented crisis at Europe's largest automaker.