In a significant strategic shift, TuSimple, a renowned self-driving truck startup, announced that it would be reducing its US workforce by 30%. This move is a part of the company’s realignment of resources as it sets its sights more on its Chinese operations.
The restructuring will affect approximately 200 employees, predominantly from the engineering and research divisions based in the United States. Concurrently, TuSimple will be closing its Arizona and San Diego offices. However, the company maintains its commitment to its US operations, retaining its headquarters in San Francisco and maintaining a presence in Texas and Pennsylvania.
TuSimple’s decision to concentrate more heavily on its Chinese operations comes on the back of significant success in the country. The company has managed to deploy its self-driving trucks on public roads and has secured a substantial $1 billion investment from Chinese investors. TuSimple believes that despite the US being a crucial market, its Chinese operations have a higher potential for long-term success.
The move is not without its challenges. TuSimple recently disclosed a delisting notice from Nasdaq due to delayed quarterly reports. The company has not filed a report for the fourth quarter or full-year results and has expressed that it will be unable to deliver first-quarter earnings timely. Despite this, shares experienced an unexpected 14% boost following the disclosure.
Notably, this is the second restructuring move by TuSimple in the last five months. In December, the company had to downsize its workforce by 25% after a partnership deal with Navistar to co-develop autonomous semi-trucks fell through. With these changes, TuSimple’s primary objective is to thrive in the Chinese market, a move it hopes will consolidate its position in the self-driving truck industry.