What’s new: Autonomous trucking startup TuSimple Holdings Inc. announced plans to cut 75% of its workforce in the United States as the company moves to wind down its American operations and focus on the Asia market.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Nasdaq-listed TuSimple said it will lay off 150 employees or 75% of its U.S. staff. The reduction brings its global workforce down to 700 full-time employees, about half of its workforce last year.
The remaining employees in the U.S. will focus on “winding down the company’s U.S. operations, including through asset sales, and assisting with its strategic shift to the Asia-Pacific region,” said TuSimple.
TuSimple estimated costs related to the layoffs and restructuring will amount $7 million to $8 million, which are expected to be reflected in the company’s fourth quarter results.
Background: Backed by Chinese social media firm Sina Corp., TuSimple operates about 100 advanced autonomous trucks, mostly in the U.S. and China, according to the company.
The company’s China background has caught the attention of U.S. regulators, triggering a lengthy national security investigation targeting the company’s data operations and China links.
In February 2022, TuSimple reached a settlement with U.S. authorities to end the probe, agreeing to split off its China business to operate independently and to restrict sensitive data access to the China division. The company has subsequently struggled with rounds of management reshuffles, which ousted the company’s co-founder Hou Xiaodi. Chen Mo, the other co-founder, stepped down in March after a business revamp.
TuSimple in May unveiled a plan to restructure its American business with layoffs. The company will stop freight services in the U.S. and shift its strategic focus to Asia-Pacific, the company said.
TuSimple went public on Nasdaq in 2021 at a $8.5 billion valuation. The company is currently valued at about $260 million.
Contact reporter Han Wei (weihan@caixin.com)
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