Tritium Layoffs: EV Charging Technology Company Cuts Staff, Pursues Profits

Tritium DCFC is planning layoffs and an Australia factory closure. The goal: Achieve a path to profitability in 2024, the fast-growing but money-losing electric vehicle (EV) charging technology company said.

Among the details to note, Tritium plans to:

• Consolidate its global manufacturing operations into its scaled plant in Lebanon, Tennessee -- which means a Brisbane, Australia, factory will close.
• Reduce selling general & administrative (SG&A) expenses via plans to decrease specific headcount and professional fees. (Layoff figures were not disclosed.)
• Retain and grow a research and development team that spans roughly 200 people.

Tritium EV Charging and Business Performance

Tritium's revenue was $184.5 million for the fiscal year ended June 30, 2023 -- up more than 115% compared to revenue of $86 million for the previous fiscal year. Still, the company had an annual net loss of $121.4 million. To boost working capital, Tritium in September 2023 secured a financing commitment of up to $75 million, with an initial funding of $25 million. 

Amid that backdrop, Tritium's stock has fallen roughly 88% over the past year. If the stock doesn't rise above $1 per share for at least 10 consecutive business days, Tritium could be delisted from the Nasdaq by April 2024. The Australia Financial Review further explains Tritium's business challenges in an October 2023 article.

In a prepared statement about Tritium's strategic plan and cost cuts, CEO Jane Hunter said: “While we continue to build on our recently reported financial results, which include achieving record revenue and gross margin, strategic restructuring of our business is necessary to drive both profitability and shareholder value. This transition is aligned with the company’s plan to be profitable in 2024. The implementation of this plan, including the closure of the Brisbane factory and consolidating our manufacturing operations in Tennessee, supports the ongoing market competitiveness and positioning of the company as a world leader in its category, driven in part by the highly successful scale-up of our US plant and the NEVI and BABA programs in the United States, while bringing our manufacturing operations closer to our largest markets. These changes reduce our capital requirements and hasten the timing of the company becoming EBITDA positive.”

Hunter joined Tritium in 2019 as chief operating officer and deputy CEO. She shifted to CEO in March 2020.

Electric Vehicle (EV) Charging Stations and Market Challenges

Tritium manages roughly 14,500 electric vehicle (EV) chargers across 47 countries. But competition is intensifying -- especially as the Tesla Supercharger Network emerges as a potential de-facto standard for charging.

Tritium is the second EV charging company to announce layoffs in recent weeks. ChargePoint announced 10% staff cuts in September 2023.

Meanwhile, 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.

Moreover, bankruptcies in the electric vehicle market are piling up. Examples include WM Motors of China, as well as Lordstown Motors and Proterra.

And on a somewhat related note, Volkswagen is planning layoffs in its Cariad software unit -- which is core to the company's EV and AI strategy.