TuSimple Holdings will cut approximately 30% of workers in another move to restructure and save money, the company said Thursday.
The layoffs will affect approximately 300 workers, bringing its workforce down to 750 full-time equivalents, according to a securities filing.
“We believe this restructuring, while difficult, aligns our capital spend with the pace of overall industry readiness and improves our long-term competitive position,” Cheng Lu, president and CEO of TuSimple, said in a statement, noting significantly reduced availability of capital in the self-driving industry. “
The move will bring an annual savings of approximately $64 million to $68 million, the tech company said. One-time expenses will also cost $12 million to $13 million, mainly for severance and Worker Adjustment and Retraining Notification costs.
The reorganization follows a similar layoff and restructuring announcement in December to reduce its workforce by 25% when it sought to reach a remaining head count of approximately 1,100 workers.
The company remains focused in developing driverless vehicles following the restructuring. It’s been testing autonomous trucks on streets and highways and clocked more than 10 million miles in testing, research and freight delivery.
It’s also noted milestones with its tech capabilities over the years. In 2021, it removed a driver from its equipment and navigated it for 80 miles. In late 2022, it used its autonomous driving system to deliver commercial goods in Europe in an approximately 186-mile route in regular traffic conditions.
But amid TuSimple’s own troubles and a worsening global economy, its board of directors authorized the additional restructuring on Tuesday. The layoffs are expected to be mostly complete by the end of its 2023 fiscal year.
”These decisions are not made lightly as they impact many of our colleagues,” Lu said. “Our company would not be where it is today without their contributions.”