Richard Wagoner, chairman and CEO of General Motors, speaks at the Annual Meeting of Stockholders in Wilmington
The world's largest automaker says it will slash at least 25,000 jobs and close some factories over the next three years.

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.