GM's Cruise to Lay Off 900 Employees and Narrow Focus as Part of Revamp

General Motors' self-driving car subsidiary, Cruise, is undergoing a significant revamp that includes laying off 900 employees, which constitutes around 24% of its workforce. The layoffs are predominantly affecting non-engineering roles, particularly in the field, commercial operations, and corporate staffing.

Newly appointed president and CTO Mo Elshenawy penned an email to the workforce, expressing the company's need to streamline and refocus its efforts following a recent pedestrian incident involving one of its robotaxis. The company emphasized that it aims to return with a more limited service in specific markets, focusing on the Bolt platform before expanding. Additionally, Cruise confirmed the dismissal of nine senior leaders, including COO Gil West and head of government affairs David Estrada.

The company's decision to restructure and downsize comes in the wake of its intention to adopt a more deliberate approach to commercialization, prioritizing safety as a primary goal. The move also aligns with GM's plan to reduce spending at Cruise by hundreds of millions of dollars in 2024. Cruise's troubled autonomous vehicle operations in San Francisco have faced scrutiny and challenges, with safety concerns and regulatory setbacks following a recent accident. The company's robotaxi fleet has been grounded, and various investigations by government agencies have been initiated. Cruise is now aiming to focus on a fully driverless L4 service and relaunch ride-hailing in a single city to start. Departing employees will receive strong severance and benefits packages, including continued pay until April 8, 2024, as well as support for RSU vesting and immigration matters. The company expressed gratitude to the departing employees and emphasized its commitment to supporting them during this transition.