GM Withdraws from Robo-Taxi Business After $14 Billion Investment, Cuts Workforce by Half

General Motors’ Withdrawal from the Autonomous Taxi Market Marks a Major Shift in the Industry

General Motors (GM) has decided to effectively withdraw from the autonomous taxi market, marking a significant shift in the company's strategy and the self-driving vehicle industry. Following years of investment and development, GM announced that it would be reducing its workforce related to its Cruise autonomous driving division by approximately 50%. This decision comes after the company ceased making new investments in Cruise, its autonomous taxi initiative, in December of last year, citing the increasing competition in the sector.

According to a Bloomberg report on February 4th, 2025, Craig Glidden, the CEO and Chief Administrative Officer (CAO) of Cruise, informed employees in an email that the company would be reducing its staff significantly. The decision to downsize also involves the resignation of several high-ranking executives, including Mark Whitten, the CEO of Cruise, who is expected to step down in the coming week.

Cruise, once considered a frontrunner in the autonomous taxi industry alongside Google's Waymo, was acquired by GM in 2016. Since then, GM has invested over $14 billion (approximately 14 trillion KRW) into the venture, aiming to develop a competitive edge in the self-driving vehicle market. However, the company’s exit from the market has been a shock to many within the industry, as GM's extensive financial commitment to Cruise seemed to indicate long-term plans in the autonomous transportation space.

The rise of competitors, such as Tesla, which announced its entry into the robo-taxi market in October 2024 with its "CyberCab" prototype, is believed to have played a significant role in GM's decision to retreat from the robo-taxi initiative. Tesla's move into the market added pressure to Cruise’s viability, leading GM to reconsider its position in the rapidly evolving sector.

In a related development, GM also announced that it has completed the process of acquiring all remaining shares of Cruise, making it a wholly-owned subsidiary. Despite its exit from the autonomous taxi market, GM stated that it plans to integrate Cruise’s autonomous technology into its own vehicles, with the advanced systems expected to be incorporated into GM's “Super Cruise” driver-assistance platform in the future.

This strategic shift underscores the challenges facing companies in the autonomous vehicle industry, where competition is intensifying and market conditions continue to evolve rapidly. With the ongoing development of self-driving technology, GM's decision to scale back its efforts in the robo-taxi business marks a pivotal moment in the industry’s trajectory, highlighting the difficulties companies face as they navigate the complexities of autonomous driving and the future of transportation.