ChargePoint (NYSE: CHPT) has announced a strategic reorganization aimed at bolstering its financial performance and setting the stage for long-term, sustainable growth. The company, a leading provider of networked charging solutions for electric vehicles (EVs), revealed that it will be reducing its global workforce by approximately 12%. This move is anticipated to result in around $14 million in restructuring charges, with expected annual operating expense savings of about $33 million.
Rick Wilmer, President and CEO of ChargePoint, commented on the reorganization, stating, "As part of a comprehensive business evaluation in my new position as CEO, today we have taken the difficult decision to reorganize our global workforce. After a thorough review of our business strategy and product roadmap, we are heightening our focus on execution, operational excellence, and improved efficiencies while we continue with our industry-leading innovation."
The company also reiterated its strong financial position, noting that it held approximately $397 million in cash, cash equivalents, and restricted cash on its balance sheet at the end of the third quarter of fiscal year 2024, with access to an additional $150 million through an undrawn revolving credit facility. ChargePoint remains committed to its plan for achieving positive non-GAAP adjusted EBITDA in the fourth quarter of calendar year 2024.
ChargePoint, which has been dedicated to facilitating the transition to electric mobility since 2007, is known for its extensive EV charging network and a wide range of charging solutions tailored for various settings, including home, multifamily, workplace, parking, hospitality, retail, and transport fleets.
The company's new President and CEO, Rick Wilmer, indicated that additional components of the strategic plan will be discussed in ChargePoint's fourth quarter of fiscal 2024 investor call expected to be held in March of this year.
The full 8-K submission from ChargePoint Holdings, Inc. is available here.
