TuSimple, one of the most notable names in the autonomous trucking sector, has announced that it will be restructuring its US operations and cutting 30% of its global workforce in a move aimed at saving the company around $120m by the end of 2022. The company’s CEO, Cheng Lu, stated in a company memo that the layoffs are intended to streamline the company’s workforce and put more resources towards developing and testing its Level 4 autonomous trucking technology.
The job cuts will only impact the company’s US operations, with TuSimple confirming that it will keep its subsidiaries in the Asia-Pacific region where it plans to continue developing Level 4 commercial autonomous freight opportunities. Lu stated that the restructuring will make the company more efficient and better aligned with the pace of overall industry readiness.
Earlier this year, TuSimple had faced the risk of being delisted from the Nasdaq stock exchange after it failed to meet regulatory filing requirements, but it avoided delisting by appealing to the Nasdaq Hearings Panel, which is set to hear the company’s views on 22 June. Despite its financial struggles, TuSimple’s stock rose by over 100% on Friday, with speculators driving the surge rather than investors.
TuSimple has been developing AI technology for the trucking industry since 2015, with a focus on reducing fuel consumption by over 10% and making self-driving trucks road-ready. The company had already laid off 25% of its workforce in December 2020 after a deal with Navistar fell apart, and now plans to further streamline its operations and focus more on developing sensor suites and reliability engineering as it moves closer towards commercialization.
Overall, TuSimple’s restructuring move is just the latest example of how the autonomous trucking industry is still finding its way towards commercialization. While investors and companies are keen to realize the significant cost savings and efficiency improvements of self-driving trucks, there remain significant technical and regulatory challenges that may continue to cause delays and setbacks for the industry.
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