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

Zinger Key Points
  • ChargePoint to incur $14 million in restructuring charges.
  • Reorganization to result in annual operating expense savings of approximately $33 million.

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 ReadTesla 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 SeeChargePoint’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.

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