GM’s Cruise Division Slashes Spending, Faces Layoffs
GM is significantly cutting spending on its self-driving vehicle subsidiary Cruise after a series of setbacks. GM Chair and CEO Mary Barra announced operations would resume, but plans for Cruise will be more “deliberate.” The cuts will amount to hundreds of millions of dollars, resulting in widespread layoffs at the San Francisco-based company.
Cruise CEO Kyle Vogt resigned along with co-founder Dan Kan, signaling major changes ahead. CFO Paul Jacobson said there will be restructuring information after two independent safety and incident review boards finish their work. GM has invested billions in Cruise, but recent setbacks have had a significant impact.
GM’s latest earnings report shows Cruise spent $732 million in the first three quarters of 2023. The company also faces costs from a recent labor deal with United Autoworkers. Despite these challenges, GM remains optimistic about future growth.
New executives have been named to run Cruise, with GM expressing confidence in their abilities. GM will be closely monitoring safety requirements as it moves forward with Cruise.
