In the wake of its driverless ride-hailing services suspension, autonomous vehicle company Cruise, owned by General Motors (NYSE:GM), announced a workforce layoff today that would majorly affect its contract workers, CNBC reported.
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Indeed, the company said the decision was a difficult but important one as it reevaluates its business. Per the report, the workforce cut would affect its contingent workforce, including workers who help with cleaning the vehicles, fleet charging, and fielding customer support inquiries. However, the company didn’t disclose the exact number of workers affected.
Cruise’s operations dipped into troubled water following several reports of its driverless vehicles colliding with pedestrians in San Francisco. As the complaints increased, the company took the decisive action of recalling its 960 robotaxis and halting operations. According to the report, Cruise said it plans to resume its driverless business, but it didn’t state when it will do so.
GM shares traded lower in Thursday’s afternoon trading session. Meanwhile, the stock is down over 19% this year.
Is GM a Good Stock to Buy Today?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on six Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average GM stock price target of $44.33 per share implies 64.49% upside potential.
