General Motors will be conducting major layoffs at Cruise, amounting to approximately 1,000 employees, or nearly 50% of Cruise’s workforce. The layoffs come after GM shifted its focus away from commercial robotaxi services toward personal autonomous vehicle technology.
Workforce Reductions and Leadership Shake-Up
As part of the restructuring, several top executives, including Cruise CEO Marc Whitten, Chief Safety Officer Steve Kenner, and Chief Human Resources Officer Nilka Thomas, will depart from the company. Cruise’s Chief Technology Officer, Mo Elshenawy, will stay on temporarily to assist with the transition.
Employees impacted by the layoffs will receive severance packages, including eight weeks of pay and additional compensation for long-term workers. GM has also promised to support affected employees with career assistance and extended benefits through April. The layoffs were first reported by TechCrunch.
The End of Cruise’s Robotaxi Era
Cruise, once hailed as a frontrunner in the autonomous vehicle industry, has faced mounting challenges that ultimately led to this drastic reduction in workforce. GM had invested over $10 billion in Cruise since acquiring it in 2016, aiming to build a scalable, self-driving ride-hailing service. However, the project encountered significant hurdles, including regulatory scrutiny, safety concerns, and increasing competition in the robotaxi space.
One of the most damaging incidents occurred in October 2023, when a Cruise robotaxi was involved in an accident that left a pedestrian trapped under the vehicle. Investigations into the incident revealed that Cruise had failed to fully disclose details to regulators, leading to the suspension of its driverless operations in California.
A Shift to Personal Autonomy
With the end of its robotaxi business, GM is pivoting its autonomous vehicle strategy toward integrating Cruise’s technology into its consumer offerings. The company plans to enhance its Super Cruise and Ultra Cruise driver-assistance systems, positioning itself in the growing market for hands-free driving features. This shift aligns with broader industry trends, as automakers increasingly focus on deploying autonomy in private vehicles rather than large-scale, commercial robotaxi fleets.
GM executives have stated that the move will save the company up to $1 billion annually. During the company’s recent earnings call, CFO Paul Jacobson confirmed that Cruise employees would be fully integrated into GM’s operations by mid-2025, with the remaining workforce primarily consisting of engineers.
