© Reuters GM’s Cruise unit cuts nine executives as safety investigation continues
Reuters published a story late Wednesday reporting that General Motors’ (NYSE:) cruise robotaxi unit had laid off nine key people.
Reuters reports it has seen a memo, confirmed by the company, indicating that nine people linked to GM’s self-driving taxi service have been released from the company as part of an ongoing security investigation related to an Oct. 2 incident at in which a woman was struck and dragged by a cruise ship. vehicle in San Francisco.
The ongoing investigation, led by law firm Quinn Emanuel, is expected to continue through January.
The recent restructuring comes after a period of turmoil within the robotaxi division.
Following an accident, the unit withdrew all its vehicles from testing in the United States to undertake a safety assessment. CEO Kyle Vogt and co-founder Dan Kan resigned in recent weeks, and Cruise is preparing for upcoming layoffs planned for this month.
“We are committed to full transparency and work to rebuild trust and operate with the highest standards of security, integrity and accountability,” the memo said. “As a result, we believe new leadership is needed to achieve these goals.”
Jeff Bleich, chief legal and policy officer, and David Estrada, senior vice president of government affairs, were among those fired.
“The personnel decisions made today are a necessary step for Cruise to move forward as it focuses on accountability, trust and transparency,” GM said in a statement.
Shares of GM were up 5.19% in early trading Thursday.
