General Motors (GM) is implementing significant changes to its autonomous vehicle division, Cruise, resulting in a 50% reduction of its workforce. This decision follows GM’s recent acquisition of full ownership of Cruise and a strategic shift away from the robotaxi market toward developing advanced driver-assistance systems for personal vehicles.
The layoffs, announced during an all-hands meeting at Cruise, primarily affect engineering positions. GM plans to integrate Cruise’s technology and talent into its Super Cruise system, which currently offers hands-free driving on over 750,000 miles of North American roads across more than 20 GM models. This integration aims to accelerate the development of both assisted-driving and autonomous-driving technologies.
GM CEO Mary Barra has cited the high costs and regulatory challenges associated with the robotaxi sector as key factors in this strategic pivot. By discontinuing its robotaxi operations, GM anticipates annual savings of approximately $1 billion. The company now aims to focus on privately owned driverless vehicles, leveraging the combined expertise of GM and Cruise teams to advance autonomous capabilities in personal transportation.
This restructuring comes after a series of setbacks for Cruise, including a suspension of its driverless testing permit in California following a pedestrian accident in October 2023. Subsequent internal investigations highlighted leadership deficiencies within Cruise, leading to the resignation of CEO Kyle Vogt in November 2023. In December 2024, GM ceased funding for Cruise’s robotaxi operations, marking a decisive shift in its autonomous vehicle strategy.
As part of the transition, some Cruise employees have received retention offers to join GM’s Super Cruise division, focusing on enhancing driver-assistance features. Despite the challenges faced by Cruise, GM remains committed to advancing autonomous technology, now with a renewed focus on personal vehicle applications.
