GM Looks To Cut Jobs

General Motors looks to cut 25-thousand jobs

General Motors, looking to reinvigorate its struggling auto business, has announced plans to cut 25-thousand jobs in the U.S. by 2008.

The announcement from Chairman and CEO Rick Wagoner came at the annual shareholders meeting in Delaware. The head of the world's largest automaker says steps including the closure of additional plants over the next few years should help to save about two and a-half billion dollars a year.

Wagoner says the company has been in "intense discussions" with its unions about how to cut health care costs, which he says puts the automaker at a "significant disadvantage versus foreign-based competitors."