What's Going On With ChargePoint Stock Thursday?

ChargePoint Holdings Inc CHPT shares are trading higher Thursday after the company announced a reorganization to position itself for long-term growth.

What Happened: After the market close on Wednesday, ChargePoint announced a reorganization that includes a 12% workforce reduction.

The company anticipates $14 million in restructuring charges, including $10 million in severance-related expenses and $4 million in facility-related expenses. However, ChargePoint expects the changes to result in annual operating expense savings of approximately $33 million.

“As part of a comprehensive business evaluation in my new position as CEO, today we have taken the difficult decision to reorganize our global workforce,” said Rick Wilmer, president and CEO of ChargePoint.

“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.”

ChargePoint highlighted that it had approximately $397 million in cash, equivalents and restricted cash as of the end of the third quarter. The company said it remains committed to achieving positive non-GAAP adjusted EBITDA in the fourth quarter of 2024.

See Also: Tesla’s Dominance To Continue In 2024, But Traditional Automakers’ Move To Slow Down EV Game ‘Will Come Back To Haunt Them:’ Munster

CHPT Price Action: ChargePoint shares were up 3.09% at $2.01 at the time of publication, according to Benzinga Pro.

Photo: CityofStPete from Flickr.