TuSimple Holdings to cut 30% of its global workforce

TuSimple Holdings Inc said on Thursday it will cut 30% of its global workforce under a restructuring as the autonomous driving technology company looks to preserve its balance sheet amid a funding crunch in the sector.

The shares of the company fell more than 8% in premarket trading. The San Diego-based company also said it is no longer seeking strategic alternatives for its Asia Pacific business, backtracking on plans it announced in March last year for the unit, reports Reuters.

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Industry executives and investors have been worried about the funding poured into the self-driving technology sector at a time when access to capital has been tight. The restructuring is expected to cost the company between $12 million and $13 million, it said in a statement, adding that the layoffs will only impact its employees in the U.S.

The move comes days after the firm received a delisting notice from Nasdaq for not filing its quarterly report on time. TuSimple said following restructuring it would continue to retain its level 4 technology development capabilities and focus on autonomous freight transportation technology.

It follows a restructuring the company announced in December and cut about 350 jobs.

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