CAMPBELL, Calif. - ChargePoint (NYSE:CHPT) Holdings, Inc. (NYSE: CHPT), a prominent electric vehicle (EV) charging network provider, today disclosed a strategic reorganization that includes trimming its global workforce by approximately 12%. This move is part of the company's efforts to enhance financial performance and secure long-term, sustainable growth.
The reorganization is anticipated to incur about $14 million in restructuring charges. This sum comprises roughly $10 million in severance and related costs, along with about $4 million in facility-related expenses. ChargePoint predicts these measures will result in annual operating expense savings of around $33 million.
The decision, announced under the direction of new President and CEO Rick Wilmer, is described as a difficult but necessary step following a comprehensive review of the company's business strategy and product roadmap. Wilmer emphasized the aim to maintain a focus on execution, operational excellence, and efficiency improvements while continuing to lead in industry innovation.
ChargePoint has communicated a robust financial standing, with approximately $397 million in cash, cash equivalents, and restricted cash as of the end of the third quarter of fiscal year 2024. The company also has access to an additional $150 million through an undrawn revolving credit facility. Furthermore, ChargePoint reaffirms its commitment to achieving positive non-GAAP adjusted EBITDA in the fourth quarter of the calendar year 2024.
The strategic plan and further details are expected to be discussed during ChargePoint’s fourth-quarter fiscal 2024 investor call, scheduled for March of this year.
This announcement follows the company's mission since 2007 to facilitate the transition to electric mobility by providing a comprehensive and accessible charging network and solutions. ChargePoint’s network grants users access to numerous charging locations across North America and Europe.
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