Cruise, Driverless Car Company, to Reduce Workforce by 900 Jobs


Cruise, the self-driving vehicle business majority owned by General Motors, has announced plans to cut 900 jobs. This decision comes as safety officials investigate the company following reports of injuries to pedestrians. Cruise had previously halted its driverless testing in the US after California suspended its testing permit. In addition to the job cuts, Cruise’s CEO Kyle Vogt and co-founder Dan Kan have both resigned in recent weeks. The company stated that the job cuts, which account for 24% of its workforce, are primarily in commercial operations and related corporate functions. Cruise emphasized that these changes are part of their strategy to focus on commercialization plans with safety as their priority. The company is providing support to affected employees through strong severance and benefits packages. General Motors, which has been supporting Cruise, expressed its support for the employment decisions made by the company. Cruise’s financial performance has been challenging, with losses exceeding $8 billion since 2016. The California Department of Motor Vehicles ordered Cruise to remove its driverless cars from the state’s roads in October, and the National Highway Traffic Safety Administration launched an investigation into the company’s fleet following two accidents involving pedestrians. Cruise has previously claimed that its safety record surpasses that of human drivers.

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