Several key executives, including Cruise CEO Marc Whitten, are leaving as part of the overhaul. GM anticipates saving about $500 million this year from these changes, with potential savings doubling in subsequent years. This restructuring comes amid broader challenges, including potential tariffs from President Donald Trump on vehicles produced in Mexico and Canada. The decision to shutter Cruise as a standalone entity ends a costly venture that had faced regulatory and reputational issues, particularly following a 2023 incident involving a pedestrian. Meanwhile, Alphabet Inc.'s Waymo and May Mobility remain active in the U.S. robotaxi market.
Key takeaways:
- General Motors Co. is cutting almost half of the workforce in its Cruise driverless car unit as part of a strategic shift away from the robotaxi business.
- Several Cruise leaders, including CEO Marc Whitten, will leave the company, and the total staff reductions amount to about 1,000 positions.
- GM will focus its resources on share buybacks and its electric vehicle business, moving away from robotaxi development due to increasing competition and resource demands.
- The decision to shutter Cruise as a stand-alone business follows regulatory and reputational challenges, including a 2023 incident involving a pedestrian injury.