- 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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