Cruise Announces Layoffs, Cutting 24% of Workforce
Cruise, a subsidiary of General Motors, has confirmed that it will be laying off 900 employees, which amounts to 24% of its workforce. The layoffs primarily affect commercial operations and related corporate functions. This comes just one day after Cruise fired nine “key leaders” due to their response to an accident involving a pedestrian and a self-driving car. Cruise had already implemented contractor layoffs last month.
A spokesperson for Cruise stated that the layoffs reflect the company’s decision to focus on more deliberate commercialization plans with safety as a top priority. The affected employees will receive paychecks until February 12th, as well as at least eight additional weeks of pay and severance based on their tenure at the company.
Shift in Focus: Fully Driverless Service and Ride-Hailing
Cruise has stated that its new goal is to work on a fully driverless Level 4 service and relaunch ride-hailing in one city initially. General Motors expressed its support for Cruise’s employment decisions and commitment to safety.
Safety Concerns and Incidents Continue
Cruise has faced numerous safety concerns and incidents since receiving approval for round-the-clock robotaxi service in San Francisco in August. Following the October accident involving a pedestrian, Cruise’s robotaxi fleet was grounded pending independent safety probes. The company’s leadership has also undergone significant changes, production of a new robotaxi has been halted, vehicles have been recalled, and investigations have been launched by government officials.
Severance Packages for Departing Employees
Departing employees will receive severance packages that include pay until April 8th, continued subsidized health benefits, RSU vesting, bonuses, perks access, and career support. Cruise will also provide immigration support for those holding work visas.
Hot Take: Cruise Faces Challenges Amidst Restructuring
Cruise’s decision to lay off 900 employees reflects the company’s shift in focus towards a fully driverless service and ride-hailing. The layoffs come after recent safety concerns and incidents, leading to the grounding of Cruise’s robotaxi fleet. While the company acknowledges the difficulty of these layoffs, it emphasizes its commitment to treating departing employees fairly with strong severance packages.
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