ChargePoint layoffs will impact 12% of its workforce, the electric vehicle (EV) charging infrastructure company announced.
The January 2024 layoffs surfaced roughly two months after ChargePoint replaced its CEO and disclosed its CFO departure. In November 2023, the company promoted Chief Operating Officer Rick Wilmer (pictured, top of page) to succeed Pasquale Romano as CEO. Also at that time, CFO Rex Jackson departed the company. Mansi Khetani, ChargePoint’s senior VP of financial planning and analysis, was named interim CFO at that time.
In a prepared statement about the January 2024 layoffs, Wilmer said: “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.”
ChargePoint expects the layoffs and an associated reorganization to save the company roughly $33 million annually. Wilmer expects to share more details during the company's March 2024 earnings call.
The January 2024 layoffs represent the second round of job cuts in the past four months. Indeed, ChargePoint cut 10% of its staff in September 2023.
Related: See all sustainability industry layoffs tracked here.
Electric Vehicle (EV) Market Challenges: Slowing U.S. Growth
After a strong start in early 2023, the overall electric vehicle (EV) market has faced growing headwinds in recent months. Sales of EVs are still growing -- but not as quickly as previously forecast. Among the data points to note: In early 2023, the average EV sold after 36 days on a dealer's lot. That figured more than doubled to 80 days in September 2023, according to a Cloud Theory EV report.
Meanwhile, EV charging network buildouts have faced reliability and competitive challenges. Amid that backdrop, numerous EV car companies are embracing Tesla's North America Charging Standard (NACS) while also building EV charging alliances without Telsa.
Moreover, bankruptcies in the electric vehicle market are piling up. Examples include WM Motors of China, as well as Lordstown Motors and Proterra.
ChargePoint: Cash on Hand, Partner Strategy
Back at ChargePoint, the company is emphasizing a "strong financial position" that emphasizes approximately $397 million in cash, cash equivalents and restricted cash on the Company’s balance sheet at the end of the third quarter of fiscal year 2024, with access to an additional $150 million through a revolving credit facility, which remains undrawn.
The ChargePoint growth strategy includes partners -- particularly EV charger installers, automakers, resellers and distributors.
Amid the January 2024 layoffs, ChargePoint believes it can achieve positive non-GAAP adjusted EBITDA in the fourth quarter of its calendar year 2024. We'll be listening for updated earnings results in March 2024.