General Motors’ Cruise is facing yet another setback as the company announced internally that it will be laying off 900 employees, accounting for 24% of its workforce, according to a confirmation from the company to CNBC. The layoffs primarily targeted commercial operations and related corporate functions, further adding to the turmoil that the robotaxi startup is currently experiencing. These layoffs follow the dismissal of nine “key leaders” for their handling of an accident involving a Cruise self-driving car. The incident, which occurred on October 2nd, resulted in a pedestrian being dragged 20 feet after being struck by another vehicle. Prior to the layoffs, Cruise had 3,800 employees, and this round of cuts comes after a previous round of contractor layoffs. Affected employees will receive paychecks until February 12th and at least eight additional weeks of pay, along with severance based on their tenure.
In a statement, a Cruise spokesperson explained that the layoffs were a result of the company’s decision to concentrate on more deliberate commercialization plans with safety as their guiding principle. This shift in focus aligns with Cruise’s goal of developing a fully driverless L4 service and reestablishing ride-hailing in one city initially. General Motors, who supports these employment decisions made by Cruise, emphasizes safety as the company’s north star and expresses confidence in the team’s ability to navigate through these challenges.
Cruise has been grappling with a series of safety concerns and incidents since receiving approval for round-the-clock robotaxi service in San Francisco back in August. Following the October accident, Cruise’s robotaxi fleet has been grounded awaiting the outcome of independent safety investigations. Moreover, the leadership team has undergone significant changes, production of a new robotaxi has been halted, several vehicles have been recalled, and both local and federal authorities have initiated their own inquiries. The California Department of Motor Vehicles suspended Cruise’s deployment and testing permits for its autonomous vehicles, citing concerns about public safety and its ability to immediately revoke permits in such cases.
To address the safety concerns, Cruise suspended all trips on public roads and announced a reorganization following a board meeting at its headquarters. The company has also implemented additional oversight from General Motors and hired an independent “safety expert” to assess its safety operations. Cruise has further expanded its investigation into its technology and safety systems by enlisting the engineering consulting firm, Exponent. Although Exponent’s investigation is still ongoing, Cruise is demonstrating its commitment to addressing safety issues and rebuilding trust with its stakeholders.
Despite the numerous challenges, General Motors’ Cruise is determined to move forward and set the company up for long-term success. By prioritizing safety, accountability, and transparency, Cruise aims to regain public trust and position itself as a leading player in the autonomous vehicle industry. The focus on a fully driverless L4 service and cautious commercialization plans reflect the company’s dedication to ensuring the safety of its passengers and the public.
The recent layoffs and safety concerns have undoubtedly shaken General Motors’ Cruise. However, the company’s commitment to addressing these issues, coupled with the ongoing investigations and strategic reorganization, suggest that Cruise is determined to overcome these obstacles and emerge as a pioneer in the autonomous vehicle space. As the industry continues to evolve, it is crucial for companies like Cruise to prioritize safety and build public confidence in order to shape the future of transportation.
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