General Motors subsidiary Cruise announced today that it will lay off roughly 8 percent of its full-time staff in a bid to cut costs amid the COVID-19 pandemic.
According to Automotive News, most of the staff cuts fall outside of Cruise’s engineering and core development teams. It’s not clear exactly which positions were cut.
“In this time of great change, we’re fortunate to have a crystal-clear mission and billions of dollars in the bank,” Cruise spokesman Ray Wert said in a statement. “The actions we took today reflect us doubling down on engineering work and engineering talent.”
GM has roughly 2,000 employees and around 160 people are believed to have been cut. Wert said Cruise intends to keep on hiring tech talent as it continues its mission to develop a driverless robotaxi service.
In a staff memo announcing the cuts, Cruise CEO Dan Ammann said the decision to release some full-time staff was “very difficult,” but reiterated the changes “are the right choice for the mission.”
Cruise originally intended to launch its driverless robotaxi service before the end of 2019, but delayed the launch indefinitely after experiencing various development setbacks. Cruise has not said when the service will finally launch, but it debuted its first driverless car, the Cruise Origin, back in January. The Origin will go into production at GM’s Detroit-Hamtramck plant sometime in 2022, GM said earlier this year.
GM hopes to one day position Cruise as an alternative to ride-hailing apps like Uber and Lyft. Without having to pay drivers a large percentage of the rider fare like Uber and Lyft currently do, the automaker sees the potential for Cruise to generate massive profits.
GM itself has not laid off any workers as a result of the COVID-19 pandemic. The automaker expects many of its production lines to return to work before the end of the month.
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Comments
But Mary Barra says cruise is so amazing and reaching so many amazing milestones. just another money draining nail in GM’s coffin.
Not to mention the Ariv electric bicycle folded the other day as well.
Sadly, I think you’re right. Killing off products left and right, but keeping this thing doesn’t make a lot of sense.
Yes. How dare Barra not foresee a global pandemic with 30 million + Americans getting laid off, even more unable to leave their houses, and the global supply chain coming to a screeching halt. I bet you’ll blame the next quarter’s expected sales drop on her too. Next.
GM may have struck gold with Cruise long term because when the nation does open up again, automation and transportation with limited human contact will be in high demand.
Yes, like the picture above of four strangers sharing close quarters in an automated drone will likely go over real well…
“In this time of great change, we’re fortunate to have a crystal-clear mission and billions of dollars in the bank,” Cruise spokesman Ray Wert said in a statement. “The actions we took today reflect us doubling down on engineering work and engineering talent.”
Wow, think of what they could have accomplished if they cut 16 or 24 percent of the staff!