Cruise Lays Off Half of Its Workforce Amid Restructuring Efforts

Autonomous vehicle company Cruise is undergoing significant changes, with the company laying off around half of its workforce, according to a report by TechCrunch. The cuts even extend to the CEO and other top executives, as part of a major restructuring effort by parent company GM.

Impact on Employees and Operations

These layoffs are expected to impact well over 1,000 people, including CEO Marc Whitten, chief safety officer Steve Kenner, and global head of public policy Rob Grant. Chief technologist Mo Elshenawy is also being laid off, but will stay on until the end of April to help with the transition. To that end, some of Cruise’s workforce and resources will carry on, being shuffled to the Super Cruise team, which is GM’s driver assistance system.

Background on GM’s Decision

These layoffs don’t come as too much of a surprise, given that GM already announced it was giving up on the development of robotaxis. The company, however, hasn’t stopped chasing the dream of autonomous vehicles. GM is still planning on rolling out driverless cars for personal use at some point in the future.

Cruise’s Recent Challenges

Cruise has had a rough last couple of years. The company faced scrutiny after one of its robotaxis struck a pedestrian and dragged them 20 feet. Prior to the crash, the company’s algorithm was fairly notorious for being buggy, as it repeatedly failed to recognize children.

Investigation and Consequences

The ensuing investigation forced Cruise to stop all operations for its manned robotaxi service. GM was fined $1.5 million for omitting key details about the aforementioned crash. There were also serious layoffs. In recent months, Cruise had resumed some limited activity, though only with human drivers. The company has since resumed operations in California with human drivers.

Conclusion

Cruise’s restructuring efforts are a significant blow to the company, but it remains committed to its vision of autonomous vehicles. While the company faces significant challenges, it is still planning to roll out driverless cars for personal use in the future.