ChargePoint, a provider of electric vehicle (EV) charging solutions, introduced a strategic reorganization to improve financial performance and foster growth. The reorganization includes a reduction of about 12% of its global workforce. The company said its reorganization is expected to result in approximately $14 million in restructuring charges, comprising around $10 million in severance and related expenses, and approximately $4 million in facility-related expenses. ChargePoint said it anticipates the action will save about $33 million in annual operating expenses. Details of the strategic plan under new President and CEO Rick Wilmer will be shared in ChargePoint’s fourth-quarter fiscal 2024 investor call in March.
Wilmer said about the reorganization: “After reviewing our business strategy and product roadmap, we are focusing on execution, operational excellence and efficiencies while continuing our innovation.”
ChargePoint reported 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. The company also has access to an additional $150 million through an undrawn revolving credit facility. ChargePoint said it aims to achieve positive non-GAAP adjusted EBITDA by the fourth quarter of calendar year 2024.