Prime Allied Limited - GM stock has increased by well over 6%—Here's Why

GM (GM) stock increased by more than 6%. Thursday after it announced employment cuts at its autonomous car branch, Cruise, in the aftermath of an accident that forced authorities to shut down the robo taxi service.
CENTRAL, Hong Kong - Dec. 18, 2023 - PRLog -- In a message, President Mo Elshenawy said that the company was laying off 900 workers, or 24% of its staff, in order to minimize expenses and concentrate on other initiatives.

Kyle Vogt, co-founder and previous CEO, and Dan Kan, Chief Product Officer, both quit last month.

Elshenawy and GM General Counsel Craig Glidden were picked to run the operation and report to the board instead of a new CEO.

Elshenawy added that Cruise was "simplifying and focusing our efforts to return with an exceptional service in one city to start with." He stated that the company's first move would be to look at its EV Bolt platform "before we scale."

Cruise has suffered since an accident in San Francisco, California, which resulted in the suspension of Cruise's deployment and autonomous testing licenses by the state's Department of Motor Vehicles.

Elshenawy and Glidden both feel the layoffs were essential "to set up Cruise for the long term." He said that individuals who are being let go would stay on the payroll until February 12.

GM shares gained 6.7% to $36.25 on Thursday, the best closing since early August. The stock is up 7.2% year to date.

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