Cruise slashes 24pc of self-driving car workforce in sweeping layoffs
Business
The layoffs are part of a plan to slash costs and attempt to revamp the company
(Web Desk) - Cruise, the GM self-driving car subsidiary, is laying off 900 workers to slash costs and revamp the company.
Cruise, the embattled GM self-driving car subsidiary, is laying off 900 employees, or about 24% of its workforce, TechCrunch has exclusively learned.
The layoffs are part of a plan to slash costs and attempt to revamp the company following an October 2 incident that left a pedestrian stuck under and then dragged by one of its robotaxis.
An email, penned by newly minted president and CTO Mo Elshenawy, was sent this morning to the entire 3,800-person workforce.
The email, which TechCrunch has viewed, began with a resigned tone: “We knew this day was coming, but that does not make it any less difficult—especially for those whose jobs are affected,” Elshenawy wrote.
Workers were expected to be informed within the hour or receiving the company wide email, as to whether they would be losing their job.
GM, which acquired Cruise in 2016, was rewarded by shareholders for the cutbacks. GM shares rose 4.8% to $35.64 following the news.
Cruise is targeting non-engineering jobs in the layoffs, particularly those people who worked in the field, commercial operations and corporate staffing, according to the email.
The company has also ended additional assignments of contingent workers who supported its driverless operations. Engineering, a category that makes up the bulk of the Cruise workforce, is largely being preserved, according to the content of the email and discussions with internal sources.
