Continuing its strategic pullback, San Francisco-based autonomous vehicle outfit Cruise is letting go of 101 employees across the Bay Area, as disclosed through filings with the state's Employment Development Department. The layoffs, which took effect last Thursday, suggest an enduring contraction of Cruise's operations, further underscoring the market challenges faced by the GM-backed venture. The job cuts span different locations: two positions at its headquarters on Cesar Chavez Street, a substantial 85 positions at Bryant Street, and another 14 in Sunnyvale, as reported by KRON4.
From a broader perspective, these layoffs appear to be the latest in Cruise's downsizing moves. Being fully enveloped by General Motors earlier this year, the company signaled a change of tact, aiming to halve its workforce, translating to roughly 1,000 employees. This pivot was precipitated by an incident in 2024, when one of Cruise's driverless vehicles struck a pedestrian. After which, the vehicle ran her over and stopped, trapping her underneath, as detailed in filings with the California DMV.
Since the accident and the subsequent suspension of Cruise's driverless taxi testing permits, competitor Waymo has continued to expand in the Bay Area. Conversely, Cruise has faced a tougher trajectory. The San Francisco Chronicle noted that General Motors halted funding to Cruise after state regulators pulled the plug on its autonomous vehicle permits due to safety concerns and growing losses associated with the program.
