Cruise Shuts Down Robotaxi Operations, Lays Off 1,000 Employees as GM Acquisition Completes

Sophia Steele

Sophia Steele

February 06, 2025 · 3 min read
Cruise Shuts Down Robotaxi Operations, Lays Off 1,000 Employees as GM Acquisition Completes

General Motors has officially completed its acquisition of Cruise, a leading autonomous vehicle company, marking the end of Cruise's robotaxi operations and resulting in the layoff of approximately 1,000 employees. The acquisition, which was announced earlier this year, has led to a significant restructuring of Cruise's operations, with the remaining staff set to focus on developing advanced driver-assistance systems (ADAS) for GM.

The layoffs, which account for about 50% of Cruise's workforce, are a significant blow to the company's employees, many of whom were inspired by Cruise's mission to develop autonomous vehicles. According to sources, the laid-off employees were primarily engineers, who will now need to find new opportunities in the industry. The remaining staff will be integrated into GM, where they will work on improving the automaker's ADAS, branded as Super Cruise.

The question on many minds is whether GM will be able to retain the remaining talent, particularly given the strong loyalty and dedication of Cruise's engineers to the company's autonomous vehicle mission. While it's unclear how the transition will play out, it's evident that GM is committed to leveraging Cruise's expertise to enhance its ADAS capabilities.

In the wake of the acquisition, sources have revealed that Cruise had been working on a retrofitted sensor solution, known as Project Rhino, which would have addressed the visibility and awareness issues that led to an incident in 2023 involving a pedestrian being hit by a Cruise robotaxi. However, with the shutdown of robotaxi operations, it's unclear whether this project will continue or be scrapped.

The news marks a significant shift in the autonomous vehicle landscape, with Cruise's demise as a robotaxi company leaving a void in the market. As the industry continues to evolve, it will be interesting to see how other players, such as Waymo and Waabi, respond to this development and adapt to the changing landscape.

In other news, the California Department of Motor Vehicles has released data showing a 50% drop in autonomous vehicle test miles, partially attributed to the end of Cruise's operations. Meanwhile, companies like Applied Intuition, GenLogs, and Presto have made significant announcements, including acquisitions and funding rounds, in the autonomous vehicle and electric vehicle spaces.

As the industry continues to navigate the challenges and opportunities of autonomous and electric vehicles, one thing is clear: the road ahead will be marked by significant changes and innovations. Stay tuned for further updates and insights from TechCrunch Mobility.

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