Haomo.AI Cuts Entire Workforce as Great Wall's Self-Driving Unit Collapses

Haomo.AI, the autonomous driving subsidiary of Chinese automotive giant Great Wall Motors, laid off its entire workforce on November 28, 2025, marking a complete shutdown of operations for one of China's most prominent self-driving technology companies. The sudden closure affects all employees across the company's research and development facilities, representing a significant setback for Great Wall's autonomous vehicle ambitions and China's broader push into self-driving technology.

The abrupt staff layoffs signal the end of Haomo.AI's operations after years of substantial investment in autonomous driving research and development. Industry sources indicate the decision reflects mounting financial pressures and the challenging economics of developing commercially viable self-driving technology in an increasingly competitive market.

Context of the Decision

The Haomo.AI layoffs stem from Great Wall Motors' strategic reassessment of its autonomous driving investments amid rising development costs and extended timelines for commercial deployment. The parent company faced mounting pressure to streamline operations as the Chinese automotive market experienced slower growth and intensified competition from both domestic and international players.

Great Wall's decision to shut down its self-driving arm reflects broader industry challenges in monetizing autonomous vehicle technology. Despite years of heavy investment, many companies have struggled to deliver profitable self-driving solutions, leading to widespread workforce reductions across the sector. The company's leadership determined that continued investment in Haomo.AI was no longer financially sustainable given current market conditions and technological hurdles.

Impact on Operations

The complete workforce reduction affects all of Haomo.AI's core functions, including artificial intelligence research, software development, testing operations, and administrative support. The company's Beijing headquarters and regional offices ceased operations immediately following the layoff announcement.

Haomo.AI's research and development teams, which had been working on Level 4 autonomous driving capabilities, were among those affected. The shutdown also impacts the company's partnerships with technology suppliers and testing facilities across China. Great Wall Motors indicated it would wind down Haomo.AI's existing projects and transfer any viable intellectual property to other divisions within the parent company.

Company Financial Background

Haomo.AI had received significant funding from Great Wall Motors since its establishment, with the parent company investing hundreds of millions of yuan in autonomous driving research and development. The subsidiary had been developing self-driving technology for Great Wall's passenger vehicle brands, including WEY and ORA, as well as exploring commercial applications for autonomous trucks and delivery vehicles.

Great Wall Motors, founded in 1984, ranks among China's largest independent automakers with annual revenues exceeding 130 billion yuan. However, the company has faced increasing pressure from electric vehicle competitors and changing consumer preferences, leading to a strategic refocus on core automotive manufacturing rather than speculative technology investments.

The shutdown of Haomo.AI represents a write-off of substantial research and development investments, though Great Wall expects to reduce ongoing operational costs significantly while maintaining focus on more immediately profitable vehicle production.

Industry Outlook

The Haomo.AI closure reflects broader challenges facing the autonomous driving industry in China and globally. Several major technology companies have scaled back self-driving initiatives in recent months due to technical challenges and regulatory uncertainties. The Chinese government's evolving approach to autonomous vehicle testing and deployment has also created additional complexity for companies operating in this space.

Other Chinese automakers, including NIO, XPeng, and Li Auto, continue investing in autonomous driving capabilities but have adopted more conservative approaches focused on driver assistance features rather than fully autonomous systems. The industry trend suggests a shift toward incremental automation improvements rather than revolutionary self-driving breakthroughs.

Conclusion

The complete shutdown of Haomo.AI marks a significant retreat by Great Wall Motors from cutting-edge autonomous driving development. This decision reflects the company's pivot toward more traditional automotive manufacturing and immediate market opportunities rather than long-term technology bets. The layoffs underscore the challenging economics of autonomous vehicle development and suggest continued consolidation within China's self-driving technology sector as companies reassess their strategic priorities and investment allocations.