GM stock jumps after company unveils plan to slash jobs and close plants

Shares of General Motors Co. rose more than 7% Monday after the car maker announced a sweeping cost-cutting plan that includes trimming its vehicle lineup in the U.S., closing U.S. and overseas plants and layoffs.

GM GM, +4.79% stock, briefly halted ahead of the announcement, was on pace for its highest close since July 24 and its largest one-day percentage increase since Oct. 31. Gains moderated as the session progressed.

GM will cut salaried and salaried contract staff by 15%, including 25% fewer executives to “streamline decision making,” the company said.

GM will funnel more resources to electric and autonomous vehicles, and expects that more than 75% of its global sales volume will come from five vehicle architectures by early next decade.

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