Self-Driving Truck Company TuSimple Axed Close To 350 Employees As Macro Uncertainties Weigh

Autonomous driving technology company TuSimple Holdings Inc TSP disclosed a restructuring plan to consolidate its position as a leader in the autonomous trucking industry.
The restructuring plan involves a 25% reduction of TuSimple's total workforce, equivalent to 350 employees.
About 80% of the remaining 1,100 staff are in research and development.
Also Read: TuSimple Fires Its CEO And Chair Following Internal Investigation, Draws Regulatory Scrutiny
The layoffs followed the termination of TuSimple and Navistar's deal to co-develop purpose-built autonomous semi trucks, TechCrunch reports.
TuSimple plans to actively work with crucial shipping partners and scale back freight expansion, including unprofitable freight lanes and respective trucking operations.
There was a one-time restructuring charge of $10 million - $11 million, with the majority recognized in the fourth quarter of 2022 and paid in the first quarter of 2023.
The compensation-related restructuring savings will likely be $55 million - $65 million annually.
"I returned to TuSimple as CEO to help address a number of challenges and set the Company up for long-term success. This required evaluating our entire workforce and making tough decisions. It's no secret that the current economic environment is difficult," – Cheng Lu, TuSimple President and CEO.
TuSimple had named three independent directors to the board, reconstituted its board committees, and stabilized the management team, including naming its interim CFO, Eric Tapia, as permanent CFO.
Reportedly, TuSimple looked to downsize 50% of its workforce, affecting 700 employees.
Price Action: TSP shares closed lower by 5.96% at $1.42 on Wednesday.

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