Big changes are underway at General Motors (GM) as the automaker decides to hit the brakes on its Cruise robotaxi project. The move is expected to save the company a whopping $1 billion each year, according to CEO Mary Barra.

The decision comes after GM announced it would no longer fund Cruise, its self-driving car subsidiary. Instead, the company plans to refocus its efforts on developing autonomous technology for personal vehicles. Barra shared the news during GM’s recent earnings call, emphasizing that the shift will lead to significant cost efficiencies.

GM’s CFO, Paul Jacobson, added that the savings will kick in once Cruise employees are fully integrated into GM by mid-year. The company spent $1.7 billion on Cruise in 2024, so the projected $1 billion savings marks a major financial pivot.

The announcement didn’t come without some turbulence. GM reported a $2.9 billion loss for the fourth quarter of 2024, partly due to restructuring costs and a $500 million charge linked to winding down Cruise. Despite this, the company ended the year on a high note, with an adjusted annual profit of $14.9 billion.

Meanwhile, Cruise employees are in limbo. Many have been sidelined since December, waiting to hear if they’ll be laid off or offered positions at GM. Retention offers have started rolling out, primarily targeting engineers, but the future remains uncertain for thousands of workers.

GM isn’t giving up on autonomous driving altogether. The company’s Super Cruise system, which allows for hands-free driving on highways, remains a priority. Barra hinted at potential partnerships to advance Level 4 autonomy—a system where cars can drive themselves under certain conditions without human intervention.

As GM finalizes its restructuring plans later this quarter, all eyes are on how the automaker will balance innovation with financial prudence. One thing’s clear: the road ahead is filled with both challenges and opportunities.