General Motors (GM) is laying off roughly 1,000 employees at its Cruise autonomous vehicle unit, cutting nearly 50% of its workforce as part of a broader plan to end its robotaxi operations and integrate Cruise into its core business.Â
This shift marks a sharp departure from GM’s previous plans to expand into autonomous ride-hailing, which the company now acknowledges it will not pursue due to rising competition and high costs. GM President Craig Glidden confirmed the layoffs through an email to employees sent on Tuesday.
The restructuring also involves the departure of several key leaders from Cruise, including CEO Marc Whitten, Chief Safety Officer Steve Kenner, and other top executives. Whitten’s exit comes just seven months after he assumed the role. This leadership change comes after GM’s December decision to end its robotaxi ambitions, which had been part of the company’s strategy to double its revenue by 2030.Â
Instead, GM will redirect its resources toward EVs and share buybacks. The company’s focus on EVs remains central to its strategy, even amid threats of losing consumer tax credits from President Donald Trump’s proposed tariffs on vehicles produced in Mexico and Canada.
Moreover, Cruise’s winding down marks the end of a costly endeavor for GM, which invested over $10 billion into the unit. The decision follows regulatory challenges, including an investigation into a 2023 incident in which one of Cruise’s autonomous cars dragged and injured a pedestrian. This incident led to a temporary suspension of operations, further staff cuts, and the departure of Cruise’s founder, Kyle Vogt.
Despite GM’s retreat, other companies, like Alphabet’s Waymo and Toyota-backed May Mobility, continue to operate in the robotaxi space, maintaining a focus on autonomous ride-hailing. GM’s decision to cease its robotaxi efforts is expected to save the company $500 million this year and even more in the coming years.
