Cruise, the self-driving vehicle business majority owned by General Motors, has announced plans to cut 900 jobs amidst investigations into the company’s safety. The move comes after reports of injuries to pedestrians, leading to Cruise halting its US testing. The company’s driverless testing permit was revoked by California, further complicating their operations. In addition, Cruise’s CEO, Kyle Vogt, and co-founder, Dan Kan, have both recently resigned.
The job cuts amount to approximately 24% of Cruise’s workforce and will primarily affect commercial operations and corporate functions. Despite the downsizing, Cruise aims to focus on safety measures as part of its more deliberate commercialization plans. The company will provide severance packages and benefits to those affected by the layoffs.
General Motors has expressed its support for Cruise’s difficult employment decisions. However, the company has experienced significant financial losses recently, with over $700 million lost in Q3 alone. Since 2016, Cruise has accumulated losses exceeding $8 billion.
Cruise’s safety record has come under scrutiny following two accidents involving pedestrians. The accidents occurred when people crossed the road after the cars’ traffic lights turned green. As a result, the California Department of Motor Vehicles ordered Cruise to remove its driverless cars from the state’s roads. The National Highway Traffic Safety Administration has also launched an investigation into Cruise’s fleet.
While Cruise maintains that its safety record surpasses that of human drivers, the recent accidents have raised concerns about the reliability of autonomous vehicles. Similar concerns have also arisen for Tesla, another driverless car company. In response to defects found in its driver assistance system, Autopilot, Tesla is recalling over two million cars.
As Cruise faces these challenges, it remains to be seen how the company will navigate the investigations, safety concerns, and financial losses. General Motors’s continued support reflects a belief in Cruise’s potential, but it will require significant efforts to regain public trust in the safety and reliability of autonomous vehicles.
