Self-driving car maker Cruise, which voluntarily suspended operations at the end of October after several accidents and license suspensions in California, announced on Thursday that it was cutting 24 percent of its workforce, or about 900 people, AFP reported.
“We knew this day was coming, but that doesn’t make it any less difficult, especially for those whose jobs have been affected,” cruise line chief Moe Elshenawy wrote in a letter to employees Thursday released by the company.
“We are simplifying and focusing our efforts on returning with exceptional service, first in one city,” he added.
This means workforce reductions, mainly in operations and commercial functions, although some engineering positions will also be affected.
A subsidiary of American giant General Motors (GM) announced on October 26 that it is suspending its self-driving operations, two days after the agency responsible for motor vehicles in California (DMV) notified it of the suspension of permits to deploy autonomous systems. vehicles and unmanned tests “with immediate effect.”
The DMV called it an “unreasonable risk to public safety,” but did not say how long the suspension would last.
In early October, a self-driving Cruise car ran over a pedestrian in San Francisco who had just been hit by another self-driving car. The victim was hospitalized in serious condition.
Cruise vehicles began operating in the city in 2022. In August, the California Transportation Agency granted Cruise permission to expand toll service in the state.
But soon after, traffic authorities asked him to halve his fleet (50 cars operating during the day and 150 at night) while he investigated two collisions, including one with a fire engine.
“Our priority right now is to focus our team on safety, transparency and accountability,” GM chief Mary Barra explained in a letter to shareholders in late November.
“We need to rebuild trust with local, state and federal regulators, as well as with emergency responders and the residents where Cruise will operate.” While acknowledging the “problems”, she announced that she was “optimistic” about the future of the service.
At the time, management said that by 2024, Cruise costs would be cut by several hundred million dollars.
Source: Hot News
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