ChargePoint, a California-based charging solutions manufacturer, has revealed plans to reduce its global workforce by approximately 12% as a component of a broader strategic reorganisation. The decision is aimed at enhancing financial performance and positioning the company for sustained, long-term growth, according to an official statement.
The restructuring initiative, disclosed on January 12, 2024, is anticipated to incur around $14 million in restructuring charges. ChargePoint anticipates that this action will yield annual operating expense savings of about $33 million. “As part of a comprehensive business evaluation in my new position as CEO, today we have taken the difficult decision to reorganise our global workforce,” said Rick Wilmer, President and CEO of ChargePoint. “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 official note released by the company highlights that ChargePoint maintains a robust financial position, holding 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. Additionally, ChargePoint has access to an additional $150 million through an undrawn revolving credit facility. The company emphasises its commitment to maintaining a strong financial standing amidst the reorganisation process.