According to Reuters, on December 14, General Motors' self-driving car business Cruise said it would lay off 24% of its workforce to restructure the business.
Cruise has been in a state of turmoil for the past few weeks. California suspended Cruise's driverless test permits after an accident in October, followed by Cruise's suspension of its self-driving tests in the United States. Last month, former Cruise CEO Kyle Vogt and co-founder Dan Kan both resigned. The layoffs came just a day after Bloomberg reported that Cruise had fired nine executives, including chief operating officer Gil West and the head of legal and ** affairs.
The layoffs are 900 people, mainly in commercial operations and related corporate functions. Cruise said it also terminated some of the "temporary workers who support our driverless business," adding that the decision to lay off employees "reflects our new future and our more deliberate go-to-market strategy." ”
A GM spokesperson said, "GM supports Cruise's decision to lay off employees because it reflects their more deliberate path forward." Last month, General Motors said it would cut the cost of cruise. Cruise lost more than $700 million in the third quarter of this year and has lost more than $8 billion since 2016.
Previously, the National Highway Traffic Safety Administration (NHTSA) also launched an investigation into the risks posed by Cruise to pedestrians. Asked if Cruise provided the NHTSA with the information it needed, NHTSA Director Ann Carlson told Reuters that the agency needed to ensure that automakers "understand what we do and understand the consequences if they don't comply." A California agency said Cruise could face a $1.5 million fine and additional sanctions for failing to disclose details of the accident. (Gasgoo Ramy).
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*: Gasgoo.