General Motors Company's (NYSE:GM) Cruise robotaxi division has laid off 24% of its workforce, just one day after nine Cruise executives were dismissed following the start of a probe into the safety of the firm’s automated technology.
COO Gil West was among the executives dismissed on Wednesday, according to a memo seen by Reuters, as Cruise eyes new leadership following the disastrous rollout and subsequent barring of its automated taxis from California's roads.
The investigation, by law firm Quinn Emmanuel, is anticipated to last until January and comes after a woman was hit and dragged by a Cruise taxi in San Francisco in early October.
“We are committed to full transparency and are focused on rebuilding trust and operating with the highest standards when it comes to safety, integrity, and accountability,” the memo said. “As a result, we believe that new leadership is necessary to achieve these goals.”
Cruise parted ways with 900 employees in order to "focus on deliberate commercialization plans," a Cruise spokesperson said in a statement. Affected employees will receive paychecks until February 12 along with at least eight more weeks of pay and severance.
These events stem from a host of incidents involving the firm’s automated vehicles, including run-ins with emergency vehicles, ultimately saw Cruise lose the right to operate the technology in California in October, just months after being given the regulatory green light.
Cruise then opted to pause all on-road vehicle operations in the US in November, shortly after chief product officer Daniel Kan and chief executive Kyle Vogt both resigned.
—Updated to include information about the layoffs—