General Motors to cut 25,000 jobs by 2008, reports $1.6bn 3rd qtr loss

[Bush_Eats_Beef]

General Motors has signed an initial agreement with unions to reduce its healthcare expenses by $3bn (£1.7bn) a year, sending its shares up 11%.

The jump in its share price came despite the firm also reporting a $1.6bn third quarter loss, compared to a $315m profit a year ago.

GM had long sought to reduce its expensive healthcare obligations, with talks starting back in the spring.

The US giant on Monday also reiterated plans to cut 25,000 jobs by 2008.

http://news.bbc.co.uk/2/hi/business/4350102.stm

[Sadie5]

1. Are you sure about that?

Has the agreement been signed? Or are they still in talks? The last I heard the union told them to reduce CEO salaries as part of cost saving measures on insurance. Early on when this first started the auto jobs that were to be cut would amount to those ready for retirement and buy outs. But with the pensions in question this could have changed. It probably takes 25 years seniority to hold a position in a GM auto plant.

[tabasco]

2. Bush's Booming Economy ! I keep hearing about it !

But then I hear about all these people losing their jobs ??

Where is the booming economy the media whores talk about?!?

:shrug:

[leeroysphitz]

3. India? n/t

[Skidmore]

4. They wouldn't have had to cut a single job, and could have

been hiring if the fools had retooled decades ago to produce energy efficient cars and cars which use alternate fuels.