- Aligning capital spend with overall market conditions and
pace of industry readiness
- Reorganization of U.S. operations and a reduction in force
to focus development efforts
- No longer seeking strategic alternatives for Asia Pacific business
SAN
DIEGO, May 18, 2023 /PRNewswire/ -- TuSimple
(Nasdaq: TSP), a global autonomous driving technology company,
announced a restructuring plan for its U.S. operations that is
intended to enable the company to continue maturing its technology
while preserving the company's balance sheet. The company also
announced it is no longer seeking strategic alternatives for its
Asia Pacific subsidiaries.
Restructuring of U.S. Operations
In light of current market conditions, today TuSimple announced
it is reorganizing its U.S. operations and better aligning staffing
levels with the company's goals. This includes an
approximately 30% reduction to TuSimple's global workforce.
The reduction in workforce will only impact TuSimple locations
within the U.S.
Rooted in the tenets of the "V-model," an industry standard for
developing complex systems, the new organizational structure for
U.S. operations is designed to prioritize validation and testing of
the company's Level 4 autonomous technology, and to improve
organizational accountability and reporting lines. The
restructuring is expected to lead to approximately $12 million to $13
million in one-time charges, consisting primarily of
severance and WARN Act-related expenses, and result in an expected
annual cash compensation expense savings of approximately
$64 million to $68 million. Including the restructuring in
December 2022, total annual cash
compensation savings are expected to be in excess of $120 million.
"As we relaunch TuSimple, we have taken a variety of factors
into consideration including further deterioration of global
economic growth, significantly reduced capital availability in the
self-driving industry and redundant hardware availability," said
Cheng Lu, president and CEO of TuSimple. "Given these factors, we
believe this restructuring, while difficult, aligns our capital
spend with the pace of overall industry readiness and improves our
long-term competitive position. These decisions are not made
lightly as they impact many of our colleagues. Our company would
not be where it is today without their contributions. For that,
they have our utmost gratitude."
Since TuSimple's founding in 2015, it has prided itself on
developing industry-leading technology and achieving many industry
firsts. TuSimple's fleet of autonomous trucks has clocked more than
10 million testing, research and freight delivery miles. It has
developed a full-stack autonomous driving software for Class 8
trucks that is among the most advanced in the industry, world-class
simulation platform, data infrastructure, and development
ecosystem. Post-restructuring, the company will continue to retain
its key Level 4 technology development capabilities and remain
focused on enabling autonomous freight transportation.
Update on TuSimple Asia Pacific Subsidiaries
The company believes it is in the best interest of shareholders
to continue owning and operating its Asia
Pacific subsidiaries and is no longer exploring a
transaction. In the past year, TuSimple's Asia Pacific subsidiaries have continued to
make progress working with several OEMs on Level 4 and Level 2+
commercial projects. In April 2023,
TuSimple announced that its proprietary, high-performance central
compute unit - TuSimple Domain Controller (TDC) - is expected to be
ready for commercial production at the end of 2023. Enabled by the
TDC and launched at the Shanghai Auto Show, TuSimple also
introduced an integrated software plus hardware autonomy perception
solution for OEM customers called TS-Box. The company intends to
continue to develop Level 4 commercial autonomous freight
opportunities in multiple Asia
Pacific markets.
About TuSimple
TuSimple is a global autonomous driving
technology company headquartered in San
Diego, California, with operations in the United States and Asia. Founded in 2015, TuSimple is developing
a commercial-ready, fully autonomous (SAE Level 4) driving solution
for long-haul heavy-duty trucks. TuSimple aims to transform the
$4 trillion global truck freight
industry through the company's leading AI technology, which makes
it possible for trucks to drive safely autonomously, operate nearly
continuously, and reduce fuel consumption by 10%+ relative to
manually driven trucks. Global achievements include the world's
first fully autonomous, 'driver-out' semi-truck run on open public
roads, and development of the world's first Autonomous Freight
Network (AFN). Visit us at www.tusimple.com.
Forward-Looking Statements
This press release contains forward-looking statements. These
statements are based on current expectations as of the date of this
press release and involve a number of risks and uncertainties,
which may cause results to differ materially from those indicated
by these forward-looking statements. Many important factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to, the Company's restructuring plan including potential
cost-savings, autonomous driving being an emerging technology, the
development of the Company's technologies and products, the
Company's limited operating history in a new market, the
regulations governing autonomous vehicles, changes in the Company's
board of directors and senior management, the Company's dependence
on its senior management team, reliance on third-party suppliers,
potential product liability or warranty claims, the protection of
the Company's intellectual property, securities class action
litigation, the Company's ability to regain compliance with Nasdaq
listing standards, and government or regulatory policies, inquiries
and actions. Moreover, the Company operates in a competitive and
rapidly changing environment, and new risks may emerge from time to
time. The foregoing list of factors is not exhaustive.
You should carefully consider the foregoing factors and the
other risks and uncertainties described under the caption "Risk
Factors" in our most recent annual report on Form 10-K, filed with
the SEC on February 24, 2022, and the
Company's other filings with the SEC. These SEC filings identify
and address other important risks and uncertainties that could
cause actual events and results to differ materially from those
contained in the forward-looking statements. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and we assume no obligation and do not intend to update or revise
these forward-looking statements, whether as a result of new
information, future events, or otherwise. We do not give any
assurance that we will achieve our expectations.
TuSimple Investor Relations
Ryan Amerman -
ryan.amerman@tusimple.ai
TuSimple Media Relations
pr@tusimple.ai
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SOURCE TuSimple Holdings, Inc.