Editor’s note: An earlier version of this story gave an incorrect name for Cruise.
In March 2019, Cruise set forth on an ambitious expansion of its staff. The company said it intended to hire at least 1,000 more engineers to bolster efforts to develop self-driving taxis.
A little more than a year later, the company reduced its full-time work force by approximately 8 percent.
About 160 employees were affected, and the layoffs hit primarily the company’s business and marketing divisions.
“In this time of great change, we’re fortunate to have a crystal-clear mission and billions in the bank,” Cruise spokesman Milin Mehta said. “The actions we took today reflect us doubling down on our engineering work and engineering talent.”
He said the layoffs were not related to the COVID-19 crisis.
The company’s road testing has been paused since the pandemic struck. That’s bad timing, because in February, Cruise reached a milestone moment, receiving a permit from the California Department of Motor Vehicles to carry passengers while testing its self-driving vehicles.
But at least some of Cruise’s all-electric test vehicles are being put to good use. Since mid-April, the company, a division of General Motors, has worked with two Bay Area organizations, SF-Marin Food Bank and SF New Deal, to use its fleet for essential delivery services. In the first 26 days of collaboration, Cruise says, it has delivered approximately 18,000 meals to low-income senior citizens. That has allowed the nonprofits to focus volunteer efforts elsewhere.
“The support Cruise has provided has been crucial in allowing us to expand our services,” said Lenore Estrada, executive director of SF New Deal, in terms of expanding the number of restaurants the food banks are serving and number of meals they’re providing.