General Motors said on Friday that its decision to cut 15 percent of its North American workforce and halt production at several plants could contribute between $2 billion and $2.5 billion to profits this year.
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The stock jumped on the news.
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Ahead of its fourth-quarter earnings announcement, the largest American automaker strengthened its earnings guidance to between $4.5 billion to $6 billion, while it said per share profits could be $6.50 to $7 — exceeding Wall Street’s $5.86 forecast, according to Refinitiv.
The closures of five GM facilities in Ohio, Michigan, Maryland and Ontario in November came as the Detroit-based company looked to cut costs amid restructuring. It could affect about 15,000 employees. GM will also cease production of several car models, including the Chevrolet Cruze and the Buick LaCrosse.While investors celebrated news of GM’s restructuring, lawmakers in the states most heavily affected by the cuts lambasted CEO Mary Barra.
President Trump also lashed out at Barra threatening to cut the company’s subsides.
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