Cruise, the autonomous vehicle subsidiary of General Motors, is set to lay off approximately 50% of its workforce, equating to around 1,050 employees. This decision follows GM’s earlier announcement to cease funding the development of a commercial robotaxi business, shifting its focus towards personal autonomous vehicle technology. The layoffs were officially announced by Craig Glidden, Cruise’s president and chief administrative officer, leaving many in the company to grapple with the uncertainty that has pervaded the organization in recent weeks.
The announcement comes on the heels of a challenging period for Cruise, marked by regulatory setbacks and strategic pivots. Notably, Cruise faced operational hurdles after an incident on October 2, 2023, when the company delayed informing authorities, leading to the suspension of its operational permits. Despite having a solution internally known as Project Rhino—a retrofitted sensor system designed to address the incident—Cruise found itself in regulatory limbo.
Employees at Cruise had anticipated the layoffs for weeks, given the stagnation following GM's strategic pivot. The company had been languishing in a state of inactivity since GM's decision was unveiled, with employees largely awaiting clarity on their roles and futures. Glidden acknowledged the difficult period that employees endured:
“Thank you for your patience during this time – we know the uncertainty has been difficult but you have navigated the past weeks with grace and professionalism,”
— Craig Glidden
The layoffs are set against a backdrop of significant financial investment from GM into Cruise. In June 2024, GM injected an additional $850 million into the company, bringing its total expenditure since acquiring a majority stake in Cruise in 2016 to nearly $10 billion. Despite this substantial investment, GM has opted to redirect its resources towards enhancing its Super Cruise system—a hands-free driver assistance technology.
The workforce reduction at Cruise signals a broader reevaluation of priorities within GM as it shifts focus from commercial robotaxis to personal autonomous vehicle advancements. This strategic redirection has prompted significant changes within the company's leadership structure. CEO Marc Whitten will depart this week alongside other key executives, including Chief Safety Officer Steve Kenner and Global Head of Public Policy Rob Grant. Meanwhile, Mo Elshenawy, Cruise's Chief Technologist, will remain until the end of April to assist with the transition.
Cruise's employees will remain on the payroll through April 5, with benefits extending until the end of April. The company's current headcount stands at roughly 2,100, based on membership numbers in a Slack channel used for company announcements. As employees prepare for this transition, Glidden advised them to:
“plan on working from home.”
— Craig Glidden
Cruise had spent much of 2024 testing its technology in cities like Phoenix, Dallas, Houston, and the Bay Area. These efforts included bolstering its safety systems in preparation for wider deployment. Nevertheless, regulatory challenges and strategic shifts have overshadowed these advancements.
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