Just earlier this month, GM Authority reported that Cruise Co-President Mo Elshenawy had acknowledged that the autonomous driving subsidiary had hit a new all-time low, and had a long road ahead of it as it works to regain public and federal trust. Now, Cruise has revealed that it has dropped almost a quarter of its workforce as the fallout from its October 2023 incident continues to mount.
Effecting roughly 900 employees primarily in commercial operations and other-related corporate functions, Cruise is making efforts to reduce the impact these job cuts will have on those affected. To this end, departing employees will remain on payroll through February 12th, 2023, and are eligible for an additional eight weeks of pay, with long-term employees offered an additional two weeks of pay per every year they spent working at Cruise over three years.
In additional, all impacted employees will receive their 2023 bonus, along with extended medical and dental coverage, immigration support, and other benefits.
“We shared the difficult news that we are reducing our workforce, primarily in commercial operations and related corporate functions,” a Cruise spokesperson claimed in a prepared statement. “These changes reflect our decision to focus on more deliberate commercialization plans with safety as our north star. We are supporting impacted Cruisers with strong severance and benefits packages and are grateful to the departing employees who played important roles in building Cruise and supporting our mission.”
As the robotaxi company continues to work towards relaunching its ride-sharing efforts in a single city, it recognizes that its restructuring reflects its future and a more deliberate path to commercialization.
“GM supports the difficult employment decisions made by Cruise as it reflects their more deliberate path forward, with safety as the north star,” a General Motors spokesperson stated. “We are confident in the team and committed to supporting Cruise as they set the company up for long-term success with a focus on trust, accountability and transparency.”
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Comments
Cruise and Brightdrop are two really good reasons to fire Mary. How can one individual waste so many billions and still have a job?
I was going to comment the exact same thing. And whats with GMs EV strategy? Get rid of the only affordable EV in the bolt but build the hummer? I cant imagine the board is happy over these major loses.
“ I cant imagine the board is happy over these major loses.”
They’re clearly rubber stampers with their collective heads in the sand. An active Board would be holding a CEO with so many swings-and-misses much more accountable.
Her one saving grace is good earnings which have come exclusively by raising pricing and cutting costs by shrinking the company. That’s not good leadership.
Pretty good article about Ms Barra’s leadership of gm over the last ten years in The WS Journal. If anything, it’s way too kind.
Titled:
“Mary Barra Spent a Decade Transforming GM. It Hasn’t Been Enough.”
They should shut the whole damn thing down.
I’m sorry those folks are losing their jobs but this has been a loser for a long time and should have been shut down long ago, just a huge waste of money.
Good luck and Godspeed to those who lost their jobs.
GM rearranging the deck chairs on Cruise/Titanic. Next they need to pick out a hymn to play when they shut it down. A huge waste of billions of dollars.
25%. 900 employees. That means 3600 people were working there and 2,700 will still be??? Sinking ship. In March 900 more will be let go.