ChargePoint Trims Staff By 12%, Aiming For $33M In Annual Savings Amid EV Charging Race

Electric vehicles charging solutions provider ChargePoint Holdings Inc CHPT is strategically reorganizing to improve financial performance and foster sustainable growth.

The reorganization includes an approximately 12% reduction of the ChargePoint global workforce.

The decision is expected to result in about $14 million in restructuring charges, consisting of $10 million in severance and about $4 million in facility-related expenses.

Also Read: Tesla Dominates EV Charging Race Installing 6,000 Fast Chargers In 2023, ChargePoint And EVgo Struggle To Keep Up: Report

ChargePoint expects the action to result in annual operating expense savings of approximately $33 million.

The company had $397 million in cash, cash equivalents and restricted cash at the end of the third quarter of fiscal year 2024.

“After a thorough review of our business strategy and product roadmap, we are heightening our focus on execution, operational excellence, and improved efficiencies while we continue with our industry-leading innovation,” said President and CEO Rick Wilmer.

The charging services provider remains committed to achieving positive non-GAAP adjusted EBITDA in Q4 FY24. 

Also See: ChargePoint’s Growth Prospects Buoyed By EV Adoption, Analyst Warns Of Tesla Competition Amid Weak Commercial Deliveries

Price Action: CHPT shares closed lower by 8.92% at $1.94 on Wednesday.