Global automotive giant General Motors (GM) has begun summoning hundreds of employees at its Herzliya-based tech centre in Israel for hearings as part of a significant round of layoffs linked to the closure of its autonomous vehicle subsidiary, Cruise. The move comes amid broader global restructuring efforts within the company, driven by a slowdown in electric vehicle (EV) demand and a re-evaluation of its autonomy roadmap.

The development centre in Herzliya, one of GM’s most critical global R&D hubs, currently employs approximately 700 staff. The exact number of employees affected by the new round of layoffs is yet to be confirmed, but sources indicate that the downsizing will impact several hundred roles, making it one of the most significant workforce reductions in the region for the company in recent years.

The layoffs follow the recent shutdown and integration of Cruise, GM’s high-profile autonomous driving subsidiary, back into the parent company. Once seen as the vanguard of GM's self-driving future, Cruise has faced a series of setbacks, including regulatory scrutiny, safety incidents, and financial pressure. The disbanding of Cruise has led to considerable role duplication across GM's global operations, prompting redundancies in overlapping positions, including those in Israel.

In a statement issued by the company, GM confirmed the layoffs, stating: “In order to accelerate GM’s vision for autonomy, we are aligning our team structure with our most critical priorities. As a result, we’ve made the difficult decision to reduce roles on the autonomous vehicle technology team in Israel. We are grateful for the teams’ contributions to this effort.”

The company emphasised that while the autonomous vehicle unit is undergoing significant changes, the Herzliya centre will continue to play a vital role in other high-priority areas such as connected camera and viewing systems, engagement services, EV charging infrastructure, fleet management solutions, cybersecurity, thermal management, DevOps, and advanced research and development.

The layoffs in Israel are part of a wider cost-cutting initiative that has also impacted GM’s operations across the United States. Earlier this year, the company let go of employees at multiple American sites, citing a need to manage slowing EV demand and streamline software development capabilities.

This is not the first workforce reduction in Israel by GM. In 2024, the company carried out layoffs affecting dozens of employees at the same Herzliya facility, then also part of a major software division reorganisation. That restructuring was aimed at consolidating GM’s global tech operations to better align with its evolving electric and autonomous vehicle strategies.

These internal changes have also coincided with leadership reshuffles, including the recent departure of GM’s Chief Technology Officer Gil Golan, just a month after his appointment. The timing has raised questions about internal stability and the future direction of GM's innovation agenda.

GM is not alone in facing turbulence in the high-risk arena of autonomous and electric vehicle development. The sector has experienced a marked shift in investor sentiment and consumer adoption rates, with EV sales growth tapering off and autonomy ambitions facing regulatory hurdles.

The layoffs at GM mirror similar decisions across the tech and mobility sectors in both the United States and Israel. Companies like Intel and Deep Instinct have also announced job cuts as they pivot and re-prioritise their strategic goals.