Cruise to 50% to reduce workforce after GM reduces financing for robotaxi operations ncvrs.com

The autonomous vehicle company Cruise dismisses 50% of the workforce -reductions that cover the CEO and many other major executives -when it comes to stopping operations. The remains of Cruise move under the General Motors parent company as the car manufacturer directs its resources to repair the Super Cruise of the handsfree driver support system and eventually drive personal autonomous vehicles.

The layoffs were announced by Craig Glidden, President and Administrative Director of Cruise, according to a corporate E -Mail, which was viewed and controlled by techcrunch. The persons concerned received a separate e -MAIL from Nilka Thomas human resources.

The layoffs arrive almost two months after GM said it was no longer financing the development of a commercial robotax business, but focusing on the construction of personal autonomous vehicle technology.

CEO Marc Whitten starts this week from Cruise, Security Director of Steve Kenner and Rob Grant’s public director.

Mo Elshenawy, Cruise’s main technologist, remains at the end of April to help the transition.

Since January 2024, Cruise employed about 1,100 people, according to sources, who based estimates for members of the number of companies on corporate announcements. This means that redundancies can affect more than 1,000 employees.

Cruise did not answer the comment request. Gm sent a press release (After announcement of layoffs) to complete the acquisition of GM Cruise Holdings LLC after approved by the GM’s bid by the Cruise Directorate. Cruise is now a 100 % owned subsidiary of GM.

The company’s sources said that Techcrunch had not yet received details of severance pay, but according to Thomas E -Mail, the company remains in the company’s payroll until April 5, and the benefits are until the end of April.

The car manufacturer is expected to save up to $ 1 billion a year with the completion of Cruise’s robotaxi development program. According to the details shared in the fourth quarter revenue call. At that time, CFO, Paul Jacobson, said the planned cost savings were based on the assumption that “shipping employees would be fully integrated into the GM by the middle of the year”.

In mid -January, shipping management began retention offers for employees who were almost all engineers, according to sources familiar with the case. CEO Marc Whitten, a Cruise workers, indicated that the next steps would come after the shipping board met. This meeting happened on Monday, according to a source.

While shipping employees were initially blinded by GM’s decision to attract the plug to the robotax development program, such announcements have been expected for weeks.

Sources with Techcrunch said they were barely working and were infinite since the announcement of GM when they were waiting for the next steps. On Monday afternoon, Glidden sent a loose message to workers, saying he was expecting to share “some news about temporary plans” and advised employees to “work from home.”

“Thank you for your patience at this time – we know that uncertainty has been difficult, but you have navigated with grace and professionalism in recent weeks,” Glidden wrote.

Glidden was previously Vice President of GM Legal and Political Executive, but the car manufacturer appointed his role in Cruise In November 2023After a shipping security event that led to the fall of the company.

On October 2, 2023, a shipping robot was run over a pedestrian driven by a man-driven vehicle. The robotaxi then pulled the pedestrian, who was approx. They were stuck under the car 20 meters as he tried a sweater maneuver.

Shipping officials did not immediately share this relevant information with the authorities, and when it turned out, the California motor vehicles and utility committee immediately suspended the company’s operating license. Cruise then earthed its entire robotax fleet in the United States and resigned most of its leadership team, including co -founder and CEO of Kyle Vogt.

After installing the new leadership, including a permanent security officer, Cruise was prepared for a restart at the beginning of the year in Austin. The company spent 2024 testing in Phoenix, Dallas, Houston and Bay Area and built its security systems. The two sources of the case told Techcrunch that the company was ready to implement a subsequent equipped sensor solution called the Rhino project, which would have solved further visibility and awareness under the car for the October 2 event.

In June 2024, GM injected another $ 850 million in the cruise, making most of Cruise’s shares in 2016 to the entire company, nearly $ 10 billion. In September, Mo Elshenawy, President of Cruise and his main technologist, organized a huge party for shipping staff that some meant that the company continued.

This story develops…