Cruise, the self-driving car subsidiary of GM, has reduced its workforce by 24 per cent, laying off 900 employees. This was done in an effort to cut costs and restructure the company.
Workers affected by the layoffs will continue to receive pay until 12, February 2024, and are eligible for an additional eight weeks of pay. Those with long-term tenure at Cruise will receive an extra two weeks’ pay for each year worked over three years.
Mo Elshenawy, president and CTO, Cruise, acknowledged the challenging nature of the layoffs in an email to employees, stating that they anticipated this day but it remains difficult, especially for those losing their jobs.
The company plans to simplify and concentrate its efforts on reintroducing excellent service in one city first. It will start with the Bolt platform before expanding further.
The reductions will primarily impact operations, with some tech positions also affected, while engineering will remain largely unaffected.
Last month, Kyle Vogt, co-founder and CEO, Cruise, resigned shortly after the California department of motor vehicles (DMV) suspended Cruise’s deployment and driverless testing permits.
On 2 October, a pedestrian was first hit by a regular car and then ended up in the path of a Cruise robotaxi. The autonomous vehicle ran over and dragged the woman 20 feet, as shown in a video.
Following this, the DMV suspended Cruise’s robotaxi operations in San Francisco, just a few months after the company obtained the necessary permit for commercialisation. The suspension order mentioned that Cruise was accused of withholding video footage from the ongoing investigation.
