General Motors Troubled Self-Driving Arm Cruise Laying Off Around 24% Workforce

General Motors’ troubled self-driving car subsidiary, Arm Cruise, announced on Thursday that it would be laying off around 24% of its workforce. Approximately 900 full-time employees will be affected, primarily those in commercial and corporate roles, as stated in a company announcement posted on Cruise’s website.

In October, an autonomous vehicle operated by Arm Cruise collided with a pedestrian in downtown San Francisco who had previously been hit by another vehicle and then proceeded to drag the pedestrian along the road for approximately 20 feet. Following this incident, California regulators suspended Cruise’s permits for testing driverless taxis. The California Department of Motor Vehicles also alleged that Cruise had withheld information and video related to the accident when revoking the permits.

EIShenawy mentioned that the company aims to “simplify and focus our efforts to reintroduce exceptional service in one city initially.” However, he did not disclose which city Arm Cruise plans to return to when it resumes operations in San Francisco, Phoenix, and Austin, Texas.

In late November, GM announced reduced spending on Arm Cruise, stating, “We anticipate a more cautious pace of Cruise expansion when operations resume, with significantly lower spending in 2024 compared to 2023.” The recent layoffs on Thursday follow a significant leadership shakeup at Arm Cruise on Wednesday, during which nine executives departed, as reported by Reuters.


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