What’s new: Nasdaq-traded self-driving truck startup TuSimple Holdings Inc. plans to slash its workforce by 25% as part of a broader business restructuring, the company said.
TuSimple said the plan would affect 350 workers as the company seeks to elevate its capital efficiency. After the layoffs, TuSimple’s workforce will decline to about 1,100, 80% of whom will focus on research and development.
The downsizing will save TuSimple $55 million to $65 million per year, the company said. TuSimple said it will shift focus to providing self-driving technology and solutions to partners in transportation businesses.
The context: Backed by Chinese social media giant Sina Corp., TuSimple operates about 100 Level 4 driverless trucks, mostly in the U.S. and China, according to the company. Level 4 autonomous vehicles can drive themselves in certain circumstances, but a human driver may sometimes need to take control.
Like other high-tech startups, the company has struggled to make ends meet. TuSimple in early November said it planned to scale back a freight network expansion, including unprofitable freight lines and trucking operations.
According to a company financial report, TuSimple posted a $93.6 million net loss in the third quarter, 15% more than a year ago. Revenue expanded 50% to $2.7 million.
The restructuring followed a series of internal investigations and management churn at TuSimple, which ended when ousted Chairman Chen Mo retook control of the company in November.
In February, TuSimple reached a settlement with U.S. authorities to end a lengthy national security probe targeting the company’s data operations and China links, agreeing to split off its China business to operate independently and to restrict sensitive data access to the China division.
Contact reporter Han Wei (weihan@Caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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