General Motors has cut off 50% of its Cruise workforce due to a restructuring of the autonomous vehicle section. The layoff will also include the CEO and other top-level position holders. The President and Chief Administrative Officer of Cruise, Craig Glidden, announced the layoff via email.
C-level positions like Chief Executive Officer and Chief Safety Officer will also step down soon. GM is drifting away from the robotaxi sector to invest more in automation technology in personal vehicles.
In December 2024, General Motors announced it would stop its funding of Cruise robotaxi operations. Since its acquisition in 2016, General Motors has invested approximately $10 billion in Cruise.
The company faced several challenges despite constant efforts to improve it. An accident took place in October 2023 when Cruise hit and dragged a pedestrian. This incident further sparked major questions about their technology and safety. The inability to detect the location made people doubt their technology.
A strategy was implemented by GM to integrate their autonomous technology, which involved upgrading to the Super Cruise system, which is a feature with advanced driver assistance meant for hands-free driving on specific routes.
The restructuring will affect a number of employees who represent half of their workforce. Cruise employees were given a notice of 60 days. The ones who have been with the company for more than three years will be given an extra two weeks of salary for every additional year spent in the company.
A third party disclosed the cultural issues in Cruise in January 2024. The company faced several internal challenges like poor leadership, culture, and incompetence. Also, the incident that occurred in October 2023 with a pedestrian in San Francisco sparked controversy. The results of the investigation related to the incident remain uncertain. A report that was published months later revealed whether the Cruise representatives misled the investigators or the media in leading the discussion.
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