General Motors spikes after announcing plans to idle 3 North American factories and slash 15% of its salaried workforce (GM)

pulse

November 26, 2018 8:16 PM

GM rallied as much as 8% after the company announced plans to idle three factories in North America and cut its salaried employees by 15% next year.

The company also said it will reduce the size of its global workforce by 15%, including a 25% cut in white-collar staff.
The moves are intended to shift resources to investing in electric and autonomous vehicles and to prepare for a downturn in the auto market, the automaker said.

General Motors rallied as much as 8% Monday after announcing plans to stop producing vehicles at three factories in North America and to cut its salaried employees by 15% next year.

GM shares were trading around $37.78 as of 3:35 ET on Monday. In late October shares were trading below $32.

Additionally, the automaker said that it would shut down its propulsion-component plants in Maryland and Michigan, and idle two additional, unnamed assembly plants outside the US. GM will also reduce the size of its total workforce by 15%, including a 25% cut in its white-collar staff.

Matthew DeBord contributed reporting.