GM's Cruise cleans house, fires 9 executives, and lays off hundreds of staff
Dec 15, 2023, 00:19 IST
- GM's Cruise has fired more executives as it cleans house amid a safety review.
- The AV firm ceased operations in October after of its vehicles struck and dragged a pedestrian.
Advertisement
Cruise, the self-driving startup mostly owned by General Motors, is cleaning house after a crash and the departure of its founder and CEO.
The company has dismissed COO Gil West, Chief Legal Officer Jeff Bleich, and seven other "key" leaders, according to an internal memo seen by Reuters and CNBC. It followed up those moves by reducing overall headcount by 24%, equating to about 900 workers.The shakeup comes after a crash in October, in which a pedestrian was dragged under one of Cruise's autonomous taxis in San Francisco. The company's operating permit was revoked in California, and it later ceased roadway operations nationwide.
According to Reuters, Cruise could face up to $1.5 million in state fines as regulators continue safety investigations.
"Following an initial analysis of the October 2 incident and Cruise's response to it, nine individuals departed Cruise. These include key leaders from Legal, Government Affairs, and Commercial Operations, as well as Safety and Systems," a company spokesperson told Business Insider."As a company, 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 and believe that new leadership is necessary to achieve these goals," they continued.Do you work for GM or Cruise? Have a tip or thoughts? Get in touch: transportation@businessinsider.com.