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Cruise Robotaxi Services Facing Major Layoffs Amid General Motors’ Shift in Strategy
Defunct robotaxi service Cruise has initiated a significant reduction in its workforce, according to sources close to the situation. This development follows an announcement by General Motors (GM) that it would discontinue its funding of the company, opting instead to concentrate on advancements in driver assistance technologies and the development of privately owned autonomous vehicles.
During a company-wide meeting, Cruise informed employees that GM has assumed complete control over its operations. A representative disclosed that approximately 40 percent of Cruise’s employees are expected to be laid off as part of this restructuring effort.
Employees at Cruise have experienced uncertainty over the past month as senior management deliberated on the company’s future direction. Recent reports indicated that Cruise began offering retention incentives to select employees, particularly engineers, who may transition to positions within GM focusing on its driver assistance technology known as Super Cruise. The company’s board was expected to convene in early February to provide an update on the status of the remaining workforce, which reportedly numbers in the thousands.
In early December, GM CEO Mary Barra announced the decision to cease operations at Cruise, asserting that a shared autonomous mobility service did not align with GM’s core business model. The high operational costs and numerous regulatory challenges associated with Cruise rendered it an impractical revenue model for the automaker. Consequently, GM plans to shift its focus towards the production of driverless vehicles intended for personal ownership.
Just last week, Barra conveyed to investors that the closure of Cruise is anticipated to yield annual savings of up to $1 billion for GM. She outlined a restructuring strategy aimed at realigning the company’s autonomous driving initiatives to prioritize personal vehicle applications.
With additional reporting by Kylie Robison
Source
www.theverge.com