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TuSimple (NASDAQ:TSP) announced on Wednesday a restructuring plan designed to set the autonomous technology company on the course for long-term success as a leader in the autonomous trucking industry.
Key points of the restructuring plan a focus on capital discipline given macroeconomic conditions and industry readiness. The California-based company said the restructuring will impact approximately 350 employees or 25% of the workforce. 80% of the remaining approximately 1,100 TuSimple (TSP) employees are noted to be in R&D functions. A one-time restructuring charge of approximately $10M to $11M is expected, with the majority recognized in Q4 and paid in the first quarter of 2023.
TSP forecast compensation related restructuring savings of $55M to $65M on an annual basis.
Looking ahead, TuSimple (TSP) plans to actively work with key shipping partners to operationalize its autonomous technology, and in an effort to help ensure capital efficiency, the company also plans to scale back freight expansion, including unprofitable freight lanes and respective trucking operations. Trucking operations along those lanes utilize previous generation autonomous software that provides limited value to the Company’s on-going technology development. The majority of the restructuring is in U.S. operations as TSP continues its plan to explore strategic alternatives for its Asia business, including a divestiture.
Shares of TSP fell 1.30% in postmarket trading on Wednesday after sliding 5.96% during the regular session/
