Autonomous Driving Firm Cruise Reduces Staff by Almost 50% Due to GM’s Funding Reduction

February 5, 2025 – Cruise, the autonomous driving subsidiary of General Motors, has recently announced a significant round of layoffs affecting nearly 50% of its workforce, including its CEO and several top executives. The decision, according to Cruise President and Chief Administrative Officer Craig Glidden, is part of a strategic shift to focus on upgrading its hands-free driving system, Super Cruise, and ultimately launching personal self-driving cars.

In an email to all Cruise employees, Glidden revealed that CEO Mark Whitten, Chief Safety Officer Steve Kenner, and Global Public Policy Head Rob Grant will all be leaving their positions this week. Additionally, Chief Technology Officer Mo ElShenawy will stay until the end of April to assist in the transition of the business.

“Following our strategic realignment in December, we have had to reduce our team by nearly half,” explained Glidden in the email. “Exiting the ride-hailing business and pivoting to collaborate with GM on developing personal self-driving cars signifies a fundamental change in our team structure and resource requirements. This adjustment is necessary to align with our new objectives and fully dedicate ourselves to creating cutting-edge autonomous driving technology.”

Sources familiar with the matter have disclosed that Cruise had approximately 2,100 employees in January 2024, implying that over 1,000 jobs could be affected by this reduction.

Cruise stated, “Layoffs are a difficult decision, and we are grateful for the contributions of our employees. We will provide severance packages and career support. Looking ahead, we will work closely with GM to advance personal self-driving technology.” Shortly after, GM announced that it had completed the full acquisition of Cruise, which is now officially its wholly-owned subsidiary.

The affected employees will receive their salaries until April 5th, with benefits extending until the end of April. They will be given an eight-week severance package, with an additional two weeks for each year of service beyond the first three. Cruise will also cover healthcare expenses for three months and provide a complimentary one-year LinkedIn Premium membership to aid in job searches.

This reorganization was foreshadowed two months ago when GM announced its intention to discontinue the development of driverless taxi services and instead concentrate on personal autonomous driving technology. According to GM’s fourth-quarter earnings call, this shift is expected to save the company $1 billion annually, contingent on the integration of Cruise employees into GM by mid-year.

The catalyst for this crisis was a significant safety incident in October of the previous year. A Cruise driverless taxi was involved in an accident in San Francisco, where it ran over and dragged a pedestrian for six meters, and the company withheld critical data. Following the revelation, the California authorities immediately suspended Cruise’s operating license, resulting in the cessation of its services across the United States.

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