General Motors’ Cruise is undergoing a significant shakeup. The company has now dismissed nine key leaders in the wake of ongoing safety investigations triggered by an October accident in San Francisco.
According to internal messages obtained by CNBC, the dismissals included leaders from Cruise’s legal, government affairs, commercial operations, and safety and systems teams. These moves were communicated to employees as being necessary for the company to regain trust and “operate with the highest standards when it comes to safety, integrity, and accountability.”
Cruise’s shakeup follows an analysis of the company’s response to an October accident, leading to regulatory suspensions and ongoing investigations. GM confirmed the employee changes, saying they were a “necessary step” for the struggling company.
“The personnel decisions made today are a necessary step for Cruise to move forward as it focuses on accountability, trust and transparency. GM remains committed to supporting Cruise in these efforts,” GM said in an emailed statement Wednesday.
The departures are yet another setback for Cruise. Since the investigation and after having their license suspended, CEO Kyle Vogt and Chief Product Officer Dan Kan have both resigned. The company is also facing fines of up to $1.5 million for withholding information related to the October accident which saw a pedestrian being run over by a Cruise autonomous vehicle.
Cruise Prepares for Limited Restart of Driverless Taxi Service in the US
