Cruise, General Motors' (GM's) self-driving vehicle subsidiary, announced layoffs affecting around a quarter of its workforce or approximately 900 staff members. The layoffs primarily impact employees in the commercial operations division and related corporate functions across the US.

GM also plans to reduce its spending on Cruise and bring in its own executives to manage operations. As such, Cruise also dismissed nine executive officers including the chief operating officer (COO).

Analyst QuickTake: In light of recent events, Cruise is looking to simplify its operations and focus on launching its service in a single city using the Chevy Bolt vehicles retrofitted with its autonomous tech. However, its production of the steering and pedal-less “Origin” shuttle remains indefinitely suspended. Today’s layoffs come after recent controversies at Cruise, including having its self-driving vehicle permits suspended due to an accident in October, withdrawing all robotaxis from operations in the US, and issuing a recall for vehicles to update software. It also started laying off its contingent workers in November.