GM Ends Cruise Robotaxi Program, Redirects Focus on Autonomous Vehicles
The announcement stunned employees when Cruise CEO Marc Whitten delivered the news through a Slack message on Tuesday. He shared a press release titled “GM to Refocus Autonomous Driving Development on Personal Vehicles” and explained GM’s decision to stop funding its self-driving taxi initiative. The shock deepened minutes later during an all-hands meeting as leadership shared details about Cruise’s integration into GM. The company will now shift Cruise’s focus to developing autonomous and driver-assist features for personal vehicles.
The abrupt decision left employees questioning their roles. Leadership provided little clarity about potential layoffs. Insiders expect job cuts, especially in non-engineering roles tied to robotaxi operations. These roles include government affairs, communications, and ground operations in cities like Phoenix, Houston, and Dallas, where Cruise had resumed testing. 
Caught Off Guard
Cruise employees expressed feelings of shock and betrayal. Many said they learned about GM’s plans at the same time as the media. Internal sources revealed that senior leadership, including Whitten, President Mo Elshenawy, and Chief Administrative Officer Craig Glidden, seemed equally surprised. During the meeting, executives urged employees to feel proud of their work. They assured staff that GM would continue developing the technology as part of its restructuring plan, which could take several months.
Unrealized Ambitions
Cruise struggled for years to commercialize robotaxis and generate revenue. In 2021, GM envisioned Cruise’s fleet of custom-built Origin robotaxis generating $50 billion annually by 2030. However, the company repeatedly delayed development timelines, and ambitions fell short.
After obtaining permits to operate commercially in San Francisco in August 2023, Cruise faced significant setbacks. A robotaxi incident in October, where the vehicle struck and dragged a pedestrian, triggered California regulators to suspend its operating permits. The incident led to CEO Kyle Vogt’s resignation, layoffs, and tighter GM oversight of Cruise’s operations.
A Pivot Toward Simplicity
Recent months revealed GM’s strategic shift. In June 2024, GM decided to discontinue the Origin robotaxi—an autonomous vehicle without a steering wheel or pedals. Instead, GM repurposed the next-generation Chevrolet Bolt for autonomous operations. This decision aimed to simplify scaling efforts while addressing regulatory challenges. The automaker recorded a $583 million charge for restructuring costs tied to the Origin.
GM also withdrew its application to the National Highway Traffic Safety Administration for exemptions that would have allowed the Origin to bypass federal safety standards. Without regulatory approval, Cruise abandoned its plans for a commercial launch of the robotaxi.
The End of an Era
Despite securing $850 million in funding to relaunch testing in cities like Phoenix, Dallas, and Houston, and signing a partnership with Uber to deploy robotaxis by 2025, Cruise could not escape its fate. GM’s decision to fold Cruise’s standalone operations into its broader efforts signals a decisive shift in focus.
Cruise employees now face an uncertain future as GM reshapes its vision of autonomous driving under a new direction.
