Cruise will cut 900 workers and revise plans for robotaxis

Cruise, which develops unmanned vehicles and is owned by General Motors, is laying off 900 employees, or 24% of its workforce.

Here's What We Know

The cuts will primarily affect the divisions responsible for the commercial implementation of robotaxi technology. The day before the company fired nine top managers responsible for responding to an incident on 2 October, when a Cruise car hit a pedestrian and dragged him six metres.

In the aftermath of the incident, Cruise's San Francisco robotaxi operations, which had been authorised for commercial transport, were suspended. The company said it was reviewing plans to bring the technology to market with a focus on safety.

Fired employees will be compensated. Cruise executives thanked them for their contributions to the development of unmanned technology. GM, which controls Cruise, supports the subsidiary's decision to adjust approaches to ensure long-term success.

Go Deeper:

• In San Francisco, a car hit a pedestrian and threw him under the wheels of a Cruise robot car
• California bans Cruise drone testing after crashes and allegations of data hiding
• Cruise suspends robotaxi operations in the US after losing its licence in California
• Cruise chief resigns after losing its licence in California and halting robotaxi operations in the US

Source: CNBC