Layoffs of 1,000 employees announced at Cruise, a division of General Motors, following a change in focus from autonomous robotaxis
General Motors Shifts Focus from Robotaxis to Personal Autonomous Vehicles at Cruise
General Motors (GM) has announced a significant change in strategy for its autonomous driving subsidiary, Cruise. The American automaker aims to integrate Cruise's technology into its consumer offerings, moving away from costly robotaxi ambitions and focusing on personal autonomous vehicles (PAVs).
This change in strategy aligns with broader industry trends, as automakers are increasingly concentrating on deploying autonomy in private vehicles rather than large-scale, commercial robotaxi fleets.
The move is expected to save GM up to $1 billion annually. As part of this restructuring, approximately 1,000 employees at Cruise will be laid off, representing nearly 50% of its workforce. The affected employees will receive severance packages, including eight weeks of pay and additional compensation for long-term workers.
The decision to shift focus follows a series of challenges that Cruise has faced, including regulatory scrutiny, safety concerns, and increasing competition in the robotaxi space. In October 2023, a Cruise robotaxi was involved in an accident, leaving a pedestrian trapped under the vehicle. Investigations revealed that Cruise had failed to fully disclose details about the incident to regulators, leading to the suspension of its driverless operations in California.
GM has promised to support affected employees with career assistance and extended benefits through April. Cruise's Chief Technology Officer, Mo Elshenawy, will stay on temporarily to assist with the transition. Meanwhile, Cruise CEO Marc Whitten, Chief Safety Officer Steve Kenner, and Chief Human Resources Officer Nilka Thomas will depart from the company.
The integration of Cruise employees into GM's operations is expected to be completed by mid-2025, with the remaining workforce primarily consisting of engineers. GM plans to enhance its Super Cruise and Ultra Cruise driver-assistance systems, positioning itself in the growing market for hands-free driving features.
Since acquiring Cruise in 2016, GM has invested over $10 billion in the company with the aim of building a scalable, self-driving ride-hailing service. However, the article does not contain new information about the investment GM has made in Cruise or the mounting challenges Cruise has faced in the autonomous vehicle industry.
The shift in strategy marks a new chapter for both GM and Cruise, as they navigate the complex and evolving landscape of autonomous vehicles.
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