General Motors Cancels 1,245 Layoffs In Brazil After Court Ruling: Report

General Motors Company GM has reportedly reversed its decision to lay off 1,245 workers from its facilities in São José dos Campos, São Caetano do Sul, and Mogi das Cruzes, located in São Paulo, Brazil.

The turn of events follows closely after a Brazilian labor court ruled against the American automotive giant's plea for a legal injunction to proceed with the job cuts, reported Reuters.

The labor union representing the workers, Sindmetal, has hailed the decision as a result of enduring a 13-day strike by the workforce, the report added. Representatives from General Motors are set to meet with union leaders on Monday to confirm the decision.

General Motors reached a tentative deal with the United Auto Workers on October 30, ending a six-week strike by the workers.

The deal included a 25% hourly pay increase and cost-of-living allowances over the four-and-a-half-year contract. 

The company reported a third-quarter FY23 revenue of $44.13 billion, beating the analyst consensus estimate of $43.68 billion. Adjusted EPS of $2.28 beat the analyst consensus estimate of $1.88.

Price Action: GM shares closed higher by 3.37% at $29.77 on Friday.

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