: Autonomous-truck company TuSimple to wind down U.S. operations, slash jobs

United States

Autonomous-truck company TuSimple Holdings Inc. is winding down its U.S. operations and slashing its workforce following a tumultuous year.

In a filing with the Securities and Exchange Commission, San Diego-based TuSimple TSP, +6.02% said Monday it would lay off about 75% of its U.S. workforce, or about 150 people, and will move to sell its U.S. assets as it refocuses its efforts to Asia.

The company expects to incur a one-time charge of $ 7 million to $ 8 million due to the latest restructuring, mostly for severance, benefits and related employee benefits, according to the filing.

TuSimple did not immediately respond to a request for comment.

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Last year, TuSimple co-founder Mo Chen took control of the company after prior CEO Xiaodi Hou ousted the board after it fired him, following a Wall Street Journal report detailing multiple federal investigations into the company over whether it defrauded investors by improper financing and whether it funneled advanced technology to another of Chen’s startup companies in China.

The company announced significant layoffs in November 2022 and again this past May, when it received a delisting notice from the Nasdaq. In June, TuSimple said it was seeking a potential sale of its U.S. business.

TuSimple went public in April 2021 at a valuation of $ 8.5 billion, and its IPO priced at $ 40 a share. As of Monday’s close, its shares were trading at 99 cents, with a market cap of $ 216 million. Its shares have fallen 39% year to date.