The effects of the Oct. 2 incident, in which a pedestrian was dragged 20 feet by a Cruise self-driving car after being struck by another vehicle, are being felt as the company lets go of most of its commercial operations and corporate functions personnel. This follows yesterday's news that nine "key leaders" at the robotaxi subsidiary were dismissed. In addition to these personnel moves, the company has also taken decisive action, such as suspending all trips on public roads and pausing manufacturing of the new robotaxi.
On Thursday, Cruise, a subsidiary of General Motors (GM), announced internally that it will be laying off 900 employees, which is 24% of its workforce. This follows the recent dismissal of nine “key leaders” due to their response to an accident involving their self-driving car earlier this year. The layoffs primarily affect Cruise's commercial operations and related corporate functions, and will follow a contractor layoff last month. Employees affected will receive paychecks until February 12 and at least eight additional weeks of pay, plus severance based on their tenure.
The announcement follows a safety probe and investigations into the October 2 accident conducted by local and federal government agencies. As a result, Cruise's robotaxi fleet had been grounded, the production of a new robotaxi halted, and hundreds of vehicles recalled. The California Department of Motor Vehicles (DMV) suspended Cruise's deployment and testing permits due to an "unreasonable risk to public safety".
Craig and Dan, CEO and CTO of Cruise respectively, stated in an email to employees that the decision to restructure was necessary in order to prioritize trust, accountability, and transparency in their automated vehicles. They further added that departing employees would receive generous severance packages, including continued health benefits and RSU vesting.
Cruise also said that they are doubling down on the Bolt platform in order to offer a fully driverless L4 service, and will relaunch ride-hailing services in one city prior to scaling. They will also enhance safety standards and processes before scaling, and are ceasing work on the Origin MY24 to focus on future programs.
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