GM’s Cruise Cuts 24% Of Workforce Amid Struggles In Business

General Motors Cruise Cuts 24% Of Workforce Amid Struggles

General Motors Cruise, the self-driving vehicle company, has decided to lay off almost a quarter of its workforce. This move comes after the company considered restructuring its workforce after facing a ban from California regulators due to an accident in October. The Department of Motor Vehicles in California suspended Cruise’s driverless testing.

After Cruise made the move of laying off its employees, GM’s shares rose by 5.4% on Thursday.

The company pulled its self-driving cabs (Robotaxis) from roads after the fatal accident in San Francisco. Kyle Vogt, the CEO of the unit, and Dan Kan, the cofounder, both resigned last month from Cruise.

The layoffs amount to 900 out of 3800 employees working from General Motors Cruise Cuts 24% Of Workforce Amid Struggles Cruise. However, these nine hundred employees are primarily from commercial operations and functions related to corporate operations. Apart from that, Cruise also claimed that it ended the work for some contingent workers who provide support to driverless operations.

Cruise added –

This reflects our new future and a more deliberate go-to-market path, meaning less immediate need for field, commercial operations, and corporate staffing.


GM also added last month that it would cut costs at Cruise. In the third quarter of 2023, the company lost more than $700 million. Since 2016, Cruise lost more than $8 billion.

A GM spokesperson added –

GM supports the difficult employment decisions made by Cruise as it reflects their more deliberate path forward, with safety as the north star.”


Last month, Cruise assured that it would relaunch its self-driving vehicles in one unspecified city and then it would plan for expansion.

The California Regulators also found Cruise to be guilty regarding the safety of the driverless vehicles. They accused the company of misrepresenting the safety of its technology.

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A passionate writer and an avid reader, Soumava is academically inclined and loves writing on topics requiring deep research. Having 3+ years of experience, Soumava also loves writing blogs in other domains, including digital marketing, business, technology, travel, and sports.


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