Autonomous truck developer TuSimple Holdings has taken another step toward exiting the U.S. market. The company had previously announced earlier this year it was exploring the possible sale of its U.S. business and a restructuring of the company.
Late last month the company’s board of directors authorized an additional restructuring plan, which includes a reduction in the company’s U.S. workforce by approximately 150 employees, or 75% and 19% of its U.S. and global workforces, respectively, according to a filing with the U.S. Securities and Exchange Commission.
Following the workforce reduction, TuSimple says it is expected to have approximately 700 global full-time employees. The company anticipates that the remaining U.S. workforce will focus on winding down the company’s U.S. operations, including through sales of U.S. assets, and assisting with the company’s strategic shift to the Asia-Pacific region.
TuSimple adds it estimates it will incur one-tiem charges of approximately $7-8 million in connection with the restructuring plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits, and related costs.
The majority of the restructuring charges per the plan will be recorded in the fourth quarter of 2023, and the full execution of the restructuring plan will be substantially completed by the end of the fiscal year 2024, the company says.