ChargePoint lays off one-eighth of its workforce
ChargePoint expects the measure to lead to annual operating cost savings of around 33 million US dollars. Recently promoted President and CEO Rick Wilmer plans to announce additional elements of his strategic plan in March of this year.
“As part of a comprehensive business evaluation in my new position as CEO, today we have taken the difficult decision to reorganize our global workforce,” says Wilmer according to a company statement. “After a thorough review of our business strategy and product roadmap, we are heightening our focus on execution, operational excellence, and improved efficiencies while we continue with our industry-leading innovation.”
Wilmer was appointed CEO of the US company with effect from 16 November 2023. He replaced Pasquale Romano, who served as ChargePoint CEO since 2011. The position of Chief Financial Officer was also filled at the same time. Rex Jackson left the company with immediate effect and was succeeded on an interim basis by Mansi Khetani, Senior Vice President of Financial Planning and Analysis at ChargePoint. No reasons for the two personnel decisions were given in the announcement at the time.
In September, there were reports in the USA that ChargePoint was also struggling with dwindling liquidity alongside Blink Charging – which the company denied at the time. Less than a month later, ChargePoint secured over 230 million dollars in capital through the sale of Aktion. In the current announcement, the charging network operator speaks of a “ChargePoint maintains a strong financial position with approximately $397 million in cash, cash equivalents and restricted cash on the Company’s balance sheet at the end of the third quarter of fiscal year 2024, with access to an additional $150 million through a revolving credit facility, which remains undrawn.” And the plan to “achieve positive adjusted non-GAAP EBITDA in Q4/2024” remains unchanged. In other words, to make a profit.
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