GM Stock Climbs After Layoff Plan, Retail Investors Back Focus Shift

General Motors (GM) stock rose 1.2% on Tuesday following news of the company planning to lay off over 1,000 salaried workers globally, primarily in its software and services division in the United States. Retail sentiment improved following the jump in stock price.

The layoffs are part of a broader effort by GM to streamline operations and refocus resources on electric vehicles (EVs).

This strategic shift resonates with some retail investors on Stocktwits, who see it as a necessary step to compete effectively with Chinese automakers already dominating the EV space.  

Stocktwits sentiment for GM flipped from ‘bearish’ to ‘bullish’ (60/100) on Tuesday morning following the announcement.

One user commented, "Took them long enough... Who's next?" highlighting the pressure on other automakers to adapt to the changing EV landscape.

This news follows GM's recent downsizing in China, where they face fierce competition from local EV manufacturers.

While GM has been investing heavily in software development for its next-generation EVs, it recently retracted its 2025 EV production targets amid a slowdown in the market.  

Amid the company’s decision to implement cost-savings measures and market challenges, GM stock has outperformed the broader market year-to-date, up over 28%.

Adding to the bullishness, the company reported strong Q2 results last month and raised its profit outlook, driven by continued demand for their trucks.

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