The company Cruise, which specializes in self-driving vehicles and is a subsidiary of General Motors, has decided to significantly reduce the number of employees.
This decision came after a series of accidents and suspension of his authorization in California, marking an indefinite hiatus (not to say a complete stop…) in his activities since the end of October. Last Thursday, the company announced a 24% layoff, affects approximately 900 employees.
Cruise CEO Mo Elshenavi shared the news with employees in a public announcement. ” We knew this day was coming, but that doesn’t make it any less difficult, especially for those whose jobs have been affected.”he expressed.
One accident is too many
These workforce reductions are primarily focused on operational and commercial functions, although some engineering positions will also be affected. The suspension of Cruise’s autonomous operations was triggered after an accident involving one of the self-driving cars in San Francisco in early October. A driver hit a pedestrian who had already been hit by a vehicle with a driver.
The California Department of Motor Vehicles (DMV) has immediately suspended permits for autonomous vehicles and unmanned testing, citing “unreasonable risk to public safety”. The suspension comes after the highway authority had already asked Cruise to cut its fleet in half to investigate two collisions, including one involving a fire truck.
General Motors will reduce the production of self-driving cars
In late November, General Motors CEO Mary Barra emphasized that Cruz’s current priority is to focus his team on safety, transparency and accountability.
She expressed the need to rebuild trust with regulators and the communities where Cruise operates. With that in mind, General Motors plans to cut Cruise spending significantly in 2024.
Before the shutdown, Cruise offered self-driving tours in San Francisco, Houston, Austin, Texas, and Phoenix, Arizona.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.