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In a significant restructuring move, Cruise LLC has confirmed widespread layoffs that will impact nearly half of its workforce, equating to over 1,000 employees. This decision comes on the heels of General Motors Co., the parent company of Cruise, announcing it would cease funding for the robotaxi initiative.
Internal expectations among Cruise employees were likely set by GM’s prior warnings. The automaker has shifted its focus away from robotaxis, opting instead to integrate the efforts of Cruise with its technical teams to enhance Super Cruise, GM’s hands-free driving technology. This pivot indicates a strategic prioritization of personal autonomous vehicles over commercial robotaxi services.
The recent layoffs not only encompass a significant portion of the workforce but also include top executives within the company. Notable figures who have been let go include:
- Marc Whitten, CEO
- Nilka Thomas, Chief Human Resources Officer
- Steve Kenner, Chief Safety Officer
- Rob Grant, Global Head of Public Policy
In this transition phase, Chief Technologist Mo Elshenawy will remain until the end of April to assist with the changes. Craig Glidden, Cruise’s President and Chief Administrative Officer, communicated the layoffs to staff via email, while HR head Nilka Thomas reached out to the affected individuals separately.
A Cruise representative expressed through The Robot Report that the company was grateful for the dedicated work of departing employees, stating, “Today, Cruise shared the difficult decision to part ways with approximately 50% of its workforce. Our focus is on supporting them into their next chapter with severance packages and career support.” The spokesperson reiterated the company’s commitment to collaborating with GM to accelerate advancements in personal autonomous vehicles.
Focus on Engineering Talent
Cruise has indicated that around 88% of the employees retained are those with engineering or related expertise, aligning with GM’s ongoing investment in technical skills. Dave Richardson, GM’s Senior Vice President of Software and Services Engineering, emphasized the advantages of combining Cruise’s specialized talent with GM’s existing teams to advance both assisted and autonomous driving technologies.
Regarding employee transitions, Cruise has provided a 60-day notice period for those affected. During this timeframe, laid-off employees will receive their regular pay along with their performance bonuses. Severance packages will include eight weeks of pay, with additional compensation for long-serving employees, three months of COBRA health coverage, and a year-long LinkedIn Premium subscription to facilitate their job searches. This severance offering mirrors the package provided last year.
Industry Dynamics: Waymo Remains Dominant
The challenges facing Cruise are not new; ongoing operational issues saw its permits suspended by the California Department of Motor Vehicles in 2023. Despite attempts to reestablish its service, these efforts fell short. GM has indicated development times and escalating costs, coupled with fierce competition in the sector, as major factors in its decision to halt funding.
In contrast, Waymo LLC, the self-driving division of Alphabet Inc., has continued its expansion without interruption. The company recently initiated its inaugural service in Los Angeles while enhancing operations in San Francisco and Phoenix, reportedly completing over 150,000 rides each week. Waymo has announced plans for further growth, including fully autonomous rides in Atlanta for employees and upcoming public services in 2025 in Miami, showcasing its robust position in the robotaxi market amid Cruise’s retreat.
Source
www.therobotreport.com