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GM plans new round of cost cuts, layoffs: report

By Russ Britt, MarketWatch

Last Update: 10:54 AM ET May 29, 2008

LOS ANGELES (MarketWatch) — General Motors Corp. is looking to further cut costs
as high fuel prices are taking a large bite out of truck and SUV sales, according
to a news report published Thursday.

The Wall Street Journal said the company’s board and top management have
discussed the prospects for new job cuts that it expects to announce at GM’s (GM)
annual shareholder meeting Tuesday.

Word of the layoffs comes on the heels of a cut of 2,000 jobs at rival Ford Motor
Co. (F), also suffering as a result of $4-a-gallon gasoline.

GM Chief Executive Rick Wagoner has cut thousands of jobs at the automaking giant
in recent years, but it continues to operate in the red. The company lost $3.3
billion on sales of $42.7 billion in the first quarter.

GM shares have dropped more than 60% since hitting a 52-week high of more than
$43 in October. Shares were off marginally to $17.10 in Thursday morning action.

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