In a major shakeup, Cruise, the autonomous vehicle company, is cutting 50% of its workforce. This includes the CEO and other top executives as General Motors (GM) pulls the plug on its robotaxi operations.

The layoffs were confirmed in an internal email from Cruise’s president, Craig Glidden. Employees affected by the cuts received separate notifications from the company’s chief human resources officer. This move follows GM’s decision two months ago to stop funding the robotaxi business and focus instead on personal autonomous vehicle technology.

While the exact number of layoffs isn’t clear, sources estimate Cruise’s current headcount at around 2,100, meaning over 1,000 employees could be impacted. Employees will remain on payroll through April 5, with benefits extending to the end of the month.

GM expects to save up to $1 billion annually by ending the robotaxi program. Cruise’s remaining operations will now fall under GM, which plans to shift resources to improving its Super Cruise driver assistance system and developing personal autonomous vehicles.

The decision comes after a tumultuous few months for Cruise. In October 2023, a Cruise robotaxi struck and dragged a pedestrian in San Francisco, leading to regulatory suspensions and a grounding of its entire fleet. The incident also triggered leadership resignations, including co-founder and former CEO Kyle Vogt.

Despite efforts to revamp safety systems and prepare for a relaunch, GM ultimately decided to pivot away from the robotaxi venture. This marks a significant shift for Cruise, which GM has invested nearly $10 billion in since acquiring it in 2016.

As the dust settles, employees are left waiting for clarity on severance packages, while the company’s leadership works to navigate the transition.

Stay tuned for updates as this story unfolds.