Well, we knew it was coming. Self-driving trucking technology company TuSimple confirmed Wednesday it plans to lay off 25% of its total workforce as part of a broader restructuring plan designed to keep the company running.
The layoffs come a couple of weeks after TuSimple and Navistar ended their deal to co-develop purpose-built autonomous semi trucks. The staff reductions, which we estimate to affect around 350 workers, also follow a rough year for the company, including a series of executive shakeups, multiple federal investigations, a truck crash and a plummeting stock price. Like many other companies exploring pioneer technology, TuSimple has struggled to make up enough revenue to cover its cash burn.
“It’s no secret that the current economic environment is difficult. We must be prudent with our capital and operate as efficiently as possible,” said Cheng Lu, TuSimple’s president and CEO, in a statement. Lu recently re-joined the company as CEO after he was ousted earlier this year. His predecessor and TuSimple’s founder Xiaodi Hou was fired following an internal probe that showed certain employees having ties and sharing confidential information with Hydron, a China-backed hydrogen-powered trucking company.