General Motors Announces Layoffs With GM Cruise Safety Investigation

The GM Cruise, the self-driving vehicle of General Motors, is facing an safety investigation while the company is laying off nearly 24% of its workforce within the division. This extreme move comes hot on the heels of a wave of executive exits, including the departure of Chief Operating Officer Gil West. These dramatic changes are all part of deep-seated turbulence within the GM Cruise unit, following a safety investigation after a serious incident involving one of its autonomous vehicles.

Since the accident, Cruise has been under intense scrutiny from California regulators. The situation appears to have triggered a chain reaction, leading to the recent resignations of CEO Kyle Vogt and co-founder Dan Kan. Furthermore, rumors of layoffs started floating around in December and have now been confirmed.

The company, clearly trying to rebuild itself, has pronounced its commitment to transparency, integrity, and accountability. As part of this new direction, Cruise believes a change in leadership is essential, hence the recent executive-level departures. Amongst those who left include Jeff Bleich, Cruise’s chief legal and policy officer, and David Estrada, the senior vice president of government affairs.

Jointly developed by GM, Cruise, and Honda, the Cruise Origin vehicle represents a significant investment by all parties involved. Sadly, as a result of the accident and the subsequent investigations, Cruise could potentially be hit with fines of up to $1.5 million and face additional sanctions for not disclosing full details surrounding the incident.

Cruise’s ambitions to broaden its autonomous taxi service in the U.S. have suffered a significant blow due to safety issues, with the California DMV indefinitely halting its robotaxi permits after an accident and the National Highway Traffic Safety Administration investigating potential faulty braking in its vehicles.

At present, leading law firm Quinn Emmanuel is steering the safety investigation. The company had petitioned U.S. regulators back in February 2022, seeking permission to deploy up to 2,500 self-driving Origin vehicles annually without human controls like steering wheels. However, Cruise recently announced plans to halt the production of its Cruise Origin van, marking another setback in its autonomous vehicle operations.

Cruise’s newly appointed president, Mo Elshenawy, acknowledged the fact that the autonomous vehicle unit is presently at an “all-time low.”