Cruise, the self-driving car subsidiary of GM, is implementing significant layoffs, reducing its workforce by 24%. The move is part of a broader effort to streamline operations and restructure the company following a recent incident involving one of its autonomous vehicles. The decision to downsize was communicated to employees through an email from the company’s president and CTO, Mo Elshenawy.
Key Takeaway
Cruise, the self-driving car subsidiary of GM, is implementing significant layoffs, reducing its workforce by 24% in a move to streamline operations and restructure the company following a recent incident involving one of its autonomous vehicles.
The Layoffs
The layoffs will affect approximately 900 employees, primarily in non-engineering roles such as field operations, commercial operations, and corporate staffing. The company emphasized that the engineering division, which constitutes the majority of Cruise’s workforce, will be largely unaffected by the layoffs. The decision to downsize comes in the wake of an incident on October 2, where a pedestrian was involved in an accident with one of Cruise’s robotaxis.
Employee Support
According to the email sent to staff, affected employees will remain on the payroll through February 12 and will be eligible for an additional 8 weeks of pay. Long-term employees will be offered further compensation based on their tenure at Cruise. Additionally, the company is providing health benefits through the end of May, contribution into 401(k) plans, and continued payroll for immigrant employees to allow for a smoother transition.
Company Statement
Cruise issued a statement acknowledging the layoffs and emphasized its commitment to supporting affected employees with comprehensive severance and benefits packages. The company also highlighted its focus on safety and deliberate commercialization plans as it navigates this transition.
Rebuilding Efforts
The layoffs follow recent executive changes within Cruise, including the resignation of co-founder and CEO Kyle Vogt, as well as the appointment of new leadership from GM’s board. The company aims to refocus its efforts and streamline operations as it works towards a more sustainable and secure future. Cruise has outlined plans to concentrate on providing exceptional service in a single city and prioritize the development of the Bolt platform.
Future Plans
Cruise’s decision to scale back its workforce and reevaluate its operations underscores the challenges facing the autonomous vehicle industry. The company’s shift towards a more deliberate approach and emphasis on safety reflect a broader trend within the self-driving car sector.
