ChargePoint, a prominent player in the electric vehicle charging sector based in Campbell, Silicon Valley, has just announced a 15% reduction in its workforce, affecting approximately 250 employees. This marks the second round of layoffs for the company this year, as reported by the San Francisco Standard.
This news was revealed during ChargePoint’s second-quarter earnings call last week. CEO Rick Wilmer remarked, “Today, we have implemented an action plan aimed at reducing operating costs while enhancing efficiency. Our focus remains on delivering new software and hardware solutions that make electrification easier.”
For the second quarter, ChargePoint reported revenues of $105 million, reflecting a 28% decrease from $150.5 million in the same quarter last year. Revenue from network charging systems saw a considerable drop of 44%, plummeting to $64.1 million. Conversely, subscription revenue rose by 21%, going from $30 million to $36.2 million compared to the same period last year.
According to ChargePoint’s latest 10-K filing, the company had a global workforce of 1,650 employees as of January 31. They estimate around $10 million in restructuring costs for the third and fourth quarters, mainly for severance packages. ChargePoint expects third-quarter revenue to be between $85 million and $95 million, falling short of FactSet analysts’ predictions of $136.1 million.
Earlier this year, in January, ChargePoint previously implemented a 12% workforce reduction, impacting about 200 jobs. The company indicated that the restructuring is anticipated to decrease annual spending by $79 million while also streamlining operations for improved efficiency.
With California Governor Gavin Newsom issuing an executive order in 2020 that mandates all new car sales be zero-emission vehicles by 2035, electric vehicle sales have consistently climbed. Data from the California Energy Commission reveals that 25.7% of all new cars sold in California during the second quarter of this year were zero-emission vehicles.
Additionally, California is set to enhance its electric vehicle charging infrastructure, with plans to introduce over 24,000 chargers in the first half of 2024, thereby maintaining its status as the state with the largest charging network in the nation.