In a recent internal announcement, General Motors’ autonomous vehicle subsidiary, Cruise, confirmed that it will be laying off 900 employees, equivalent to 24% of its workforce.
The bulk of the layoffs mainly impacted commercial operations and related corporate functions. This development follows the dismissal of nine “key leaders” at Cruise on Wednesday, attributed to their handling of an accident involving a Cruise self-driving car on October 2, where a pedestrian was dragged for 20 feet after being struck by another vehicle.
Prior to this round of layoffs, Cruise had a total of 3,800 employees and had already conducted a round of contractor layoffs last month. The affected employees will receive their paychecks until February 12, along with at least an additional eight weeks of pay and severance packages based on their tenure at the company.
A spokesperson from Cruise explained that the decision to reduce the workforce was driven by their intention to focus on more cautious commercialization plans, keeping safety as their guiding principle. The company assures that impacted employees will be supported through robust severance packages. Cruise also aims to develop a fully driverless L4 service while planning to reintroduce ride-hailing operations in one city as a starting point.
General Motors expressed its support for Cruise’s workforce reduction as it aligns with the company’s more measured approach, emphasizing safety as their top priority. GM remains confident in Cruise’s team and reiterates their commitment to supporting the subsidiary’s long-term success, emphasizing trust, accountability, and transparency.
Source (CNBC)
