ChargePoint Holdings Inc. recently revealed its plan to reduce its workforce by 12% as a strategic measure aimed at cutting costs by approximately $33 million per year. While the exact number of employees affected was not disclosed, the company’s annual report stated that it had over 1,650 employees as of January 31, 2023, suggesting that roughly 198 individuals may be impacted.
Electric-vehicle adoption has been slower than anticipated due to the higher prices associated with these vehicles. This sentiment has been echoed by industry players such as Ford Motor Co. However, ChargePoint CEO Rick Wilmer emphasized that this staff reduction was a necessary decision following a comprehensive evaluation of the business since he assumed the role in November. Wilmer, who previously served as the operating chief at the electric-vehicle charging station provider, joined ChargePoint in 2022.
In an effort to streamline operations and enhance efficiency, Wilmer stated, “We are heightening our focus on execution, operational excellence, and improved efficiencies.” The company plans to take $14 million in restructuring charges related to the job cuts, with the majority of these expenses being reflected in their upcoming fourth-quarter results scheduled for release in March.
Despite these adjustments, ChargePoint remains well-capitalized with $397 million in cash, cash equivalents, and restricted cash on its balance sheet as of the end of the third quarter. Additionally, the company has access to an untapped revolving credit facility worth $150 million.
Over the past year, ChargePoint’s stock has experienced a decline of 19.8%, in contrast to the Nasdaq COMP’s gain of 35.2%. Notably, the company made history as the world’s first publicly-traded global EV charging network when it went public in 2021 through a reverse merger with Switchback Energy Acquisition Corp., a special purpose acquisition company.
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