Cruise, a self-driving car company 75% owned by General Motors, is laying off 900 workers.
The warning comes as safety inspectors probe the corporation following allegations of pedestrian casualties.
After California suspended its autonomous testing authorization, Cruise withdrew all of its US vehicles from testing this autumn.
Kyle Vogt, the company's CEO, and co-founder Dan Kan have both quit in recent weeks.
Cruise acknowledged the job layoffs, which amounted to 24% of its personnel, were "primarily in commercial operations and related corporate functions" on Thursday.
"These changes reflect our decision to focus on more deliberate commercialization plans with safety as our North Star," the company stated in a statement.
The startup also stated that it provides "strong severance and benefits packages" to its employees.
According to news agency Reuters, General Motors announced last month that it will slash expenses at Cruise, which lost more than $700 million in the third quarter, bringing total losses to more than $8 billion since 2016.
"GM supports the difficult employment decisions made by Cruise," stated a GM spokesperson.
The California Department of Motor Vehicles ordered Cruise to remove its driverless vehicles off California roads in October, and the National Highway Traffic Safety Administration (NHTSA) initiated an inquiry into its fleet.
The changes were made in response to two pedestrian accidents, both of which included people crossing after the traffic signals for automobiles had turned green.
In one instance from August 2023, the self-driving car hit someone at 1.4mph, while in another from October, the driverless car pulled a lady who had been forced into its path after being hit by another car piloted by a person.
According to the October report, the self-driving car "braked aggressively" but was unable to stop in time. Both occurrences occurred at night.
Cruise previously said that it "continues to outperform comparable human drivers" in terms of safety.
Cruise isn't the only self-driving vehicle firm dealing with safety concerns.
Tesla is recalling over two million vehicles after a US regulator discovered that its driving assistance technology, Autopilot, was partially flawed.
It follows a two-year investigation into crashes that occurred when the technology was in use.