Cruise slashes workforce by 25% amid safety concerns

In a strategic move to address safety concerns, US autonomous driving venture Cruise, a subsidiary of General Motors, has announced a significant reduction in its workforce.

Approximately 24% of employees, totaling around 900 people, are set to lose their positions following a recent hiatus prompted by a highly publicized incident in California.

President Mo Elshenawy conveyed the company’s decision to prioritize safety over rapid expansion.

“We aim to resume operations in one market and enhance our safety standards and processes before we scale,” Elshenawy stated in a message to employees.

This shift marks a departure from Cruise’s previous plans to expand into over a dozen new cities in 2024.

Cruise, a key player in GM’s autonomous driving initiative, has been in limbo since October 27 when operations were suspended after California halted testing of the company’s robotaxis.

The scrutiny intensified following an incident in San Francisco where a self-driving car operated by Cruise was involved in an accident resulting in a fatality.

The victim had been initially struck by a hit-and-run driver before being hit by the autonomous vehicle.

GM Chief Executive Mary Barra addressed the concerns during a meeting with Wall Street analysts on November 29, revealing that the company had initiated independent reviews of the incident, focusing on both safety and technology aspects.

Barra emphasized a “very deliberate” approach to resuming operations.

In light of the delayed commercialization, Cruise disclosed a significant reduction in planned expenditures for 2024 compared to the previous year.

The company officials stressed the need for a more cautious approach, redirecting efforts toward strengthening safety measures.

Mo Elshenawy clarified that the reduction in workforce was primarily outside of engineering, though some technology positions were also affected.

The decision reflects Cruise’s commitment to prioritizing safety, even if it means a temporary setback in their expansion plans.