General Motors lays off 50% of Cruise employees as robotaxi business winds down

General Motors is laying off half of the remaining staff at Cruise—as the automaker shifts to dissolve the robotaxi business, a sharp detour from nearly 10 years ago when the company touted the service as the future of mobility.

The details: News of the Cruise layoffs—first reported by TechCrunch—follows GM’s December announcement that it would no longer fund the driverless ride-hailing service, which reportedly employed 2,300 as of the end of 2024.

• Employees were informed of the nearly 50% workforce cuts via an internal email sent Tuesday that noted it was the result of a strategy change.

• Several top Cruise execs were also part of the layoffs, including Marc Whitten, CEO; Nilka Thomas, chief human resources officer; Steve Kenner, chief safety officer; and Rob Grant, chief government affairs officer.  

• Based on the TechCrunch report, more than 1,000 employees at Cruise lost their jobs.

Late Tuesday, GM issued a press release indicating that Cruise’s technology will be integrated into Super Cruise, with a focus on expanding the capabilities of the assisted driving system available across its consumer brands. The announcement also mentioned transitioning some of the talent at the ride-hailing company to the Super Cruise team.   

What they’re saying: “By combining the specialized technology and talent at Cruise with our team developing Super Cruise, we’ll have the ability to accelerate our work on both assisted driving and autonomous driving,” said Dave Richardson, Senior Vice President of Software and Services Engineering at GM.

Between the lines: Given the December announcement about Cruise, the Tuesday layoffs likely came as no surprise to most affiliated with the ride-hailing company. However, the automaker’s decision to bail out of the ride-hailing business raises questions about the financial risks involved in gravitating to an idea too soon, given the shifting dynamics of the market.   

• GM first acquired Cruise in 2016, spending $10 billion on the self-driving business since acquiring it.  

• When the automaker purchased Cruise, there was a lot of buzz around the potential of a self-driving ride-hailing service as a viable revenue source.

• Autonomous vehicles have faced an uphill battle with consumers, with 58% saying that they are “not very or not all enthusiastic” about the idea.

GM’s decision to dissolve Cruise as a ride-hailing company was likely accelerated by some of the safety issues tied to the driverless ride-hailing company, including being penalized $1.5 million as part of a consent order after the unit failed to adequately report a crash in San Francisco last October, involving a pedestrian.          

Bottom line: For GM—this appears to be about cutting its losses and focusing on what’s working. The dream of self-driving taxis may be on hold— but the push for smarter assisted driving is still full speed ahead.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 90,000+ others now, it's free:

In today's automotive landscape, car buyers invest more time than ever in researching, considering, and comparing options. But for dealers, the challenge lies in pinpointing the audience ready to make a purchase.

Enter Premier by Edmunds.

Premier offers dealers a groundbreaking way to connect with in-market car shoppers precisely when, where, and how they prefer. With over 20 million monthly visits, Edmunds.com is the go-to destination for buyers seeking market insights, expert advice, and budget tools to make informed decisions.

Through Edmunds Premier, dealers gain access to this highly coveted audience. Simply list your new and used inventory on Edmunds, and watch as qualified, in-market traffic flows directly to your vehicle detail pages on your website.

Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today at Edmunds.com/CDG.