|Richard Wagoner, chairman and CEO of General Motors, speaks at the Annual Meeting of Stockholders in Wilmington|
General Motors officials say they hope to save $2.5 billion a year when the cost-cutting effort is complete.
Chief Executive Rick Wagoner told shareholders Tuesday that he must take action in light of the first quarter's $1.3 billion loss.
GM profits have been hurt by high costs for employee medical care, rising materials cost, and a shrinking market share.
GM's stock price rose after the announcement.
Some information for this report provided by Bloomberg, AP, AFP and Reuters.