General Motors’ Cruise, the robotaxi startup, has announced that it will lay off 900 employees, accounting for 24% of its workforce. These layoffs primarily affect commercial operations and related corporate functions, marking the latest upheaval for the company. This decision comes just one day after Cruise dismissed nine “key leaders” due to their response to an accident involving a Cruise self-driving car. The incident resulted in a pedestrian being dragged 20 feet by the car after being struck by another vehicle. Prior to these layoffs, Cruise had a total of 3,800 employees. The company had also recently laid off some contractors. The affected employees will receive paychecks until Feb. 12 and an additional eight weeks of pay, along with severance based on tenure.
Cruise has stated that these layoffs reflect their decision to prioritize safety and focus on more deliberate commercialization plans. The company aims to work on a fully driverless L4 service and plans to relaunch ride-hailing in a single city as a starting point. General Motors, which owns the majority of Cruise, supports the company’s employment decisions and emphasizes safety as the guiding principle. GM is confident in the Cruise team and committed to providing support to ensure the company’s long-term success, with trust, accountability, and transparency at the forefront.
Cruise has faced a barrage of safety concerns and incidents, which have contributed to the ongoing turmoil. Since receiving approval in August for round-the-clock robotaxi service in San Francisco, the company has encountered numerous challenges. These challenges include the October accident that resulted in the grounding of Cruise’s robotaxi fleet, halting production of a new robotaxi, recalling hundreds of vehicles, and attracting investigations from local and federal government authorities. The California Department of Motor Vehicles suspended Cruise’s deployment and testing permits for autonomous vehicles due to concerns regarding public safety.
In response to the October accident, Cruise suspended all trips on public roads and announced a reorganization following a board meeting. The company also implemented enhanced oversight from General Motors and hired an independent “safety expert” to assess its safety operations. Furthermore, Cruise enlisted the services of Exponent, an engineering consulting firm, to conduct an expanded investigation into the company’s technology and safety systems. The investigation by Exponent is ongoing, and its findings are yet to be released.
Amidst the turmoil, Cruise is determined to overcome these challenges and move forward with a renewed focus on safety. The company’s strategic shift towards a fully driverless L4 service and a careful approach to commercialization aims to restore confidence and trust in its autonomous technology. The support from General Motors demonstrates the commitment to Cruise’s long-term success and the prioritization of safety as a guiding principle.
General Motors’ Cruise has been hit hard by various setbacks, including the recent layoffs and the handling of the October accident. However, the company remains determined to navigate through this turmoil, learn from its mistakes, and emerge as a leader in the rapidly evolving autonomous vehicle industry. With a renewed dedication to safety and a focus on commercialization, Cruise aims to regain public trust and pave the way for a future where self-driving cars become commonplace on our roads.
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