Cruise laying off half its workforce as it prepares to shut down operations: report

SAN FRANCISCO (KRON) -- Autonomous robotaxi company cruise is laying off nearly half of its employees, according to reports. Cuts extend to the company's CEO and other top executives as the company prepares to wind down operations, according to TechCrunch.

The layoffs come on the heels of news that General Motors has acquired full ownership of the company. As a wholly owned subsidiary of GM, Cruise will "work collaboratively on autonomous vehicle technology and advanced driver assistance systems for personal vehicles," according to a press release from GM.

GM plans to integrate Cruise's technology into its Super Cruise assisted driving system, software that "allows drivers to take their hands off the wheels on 750,000 miles of roads across North America."

Previously, GM announced it would stop funding Cruise and retreat from the robotaxi business. Cruise had been testing its autonomous taxis in San Francisco and other U.S. cities. However, a 2023 collision in which a jaywalking pedestrian was struck by a human driver and knocked into the path of a Cruise -- which dragged the victim underneath for 20 feet before pulling over -- raised serious questions about the safety of Cruise vehicles.

The California Public Utilities Commission went on to suspend Cruise's driverless operations in California.

“Cruise shared the difficult decision to part ways with approximately 50% of its workforce. We are grateful for their passion and contributions to help us reach this stage, and our focus is on supporting them into their next chapter with severance packages and career support," said Cruise in a statement cited by TechCrunch. "While not an easy decision, we are focused on combining efforts with General Motors to accelerate autonomy at scale on personal autonomous vehicles.”

Laid off employees will remain on the Cruise payroll through April 5 and receive benefits through the end of April, TechCrunch said.