New York Stock Exchange-listed electric vehicle charging network operator, ChargePoint has announced a restructure designed to improve financial performance and position itself for long-term growth.
The restructure includes an approximately 12% reduction of the ChargePoint global workforce, and the company has told Australian customers it will cease operating in that market from February 1, 2024.
According to Drive, ChargePoint sent an email to its Australian customers advising that it is shutting down its application and a network of 46 charging stations in New South Wales, Victoria, Queensland, and South Australia.
The company installed its first charging station in 2010, but since mid-2020 the stations have operated only with remote support from the USA.
Until the end of January 2024, as the app is no longer functioning, customers will be able to access the chargers using a credit card or ChargePoint card, and any remaining credit after that will be refunded.
The global reorganisation is expected to lead to US$14 million in restructuring charges, consisting of US$10 million in severance and related expenses and US$4 million in facility-related expenses. ChargePoint expects the action to result in annual operating expense savings of US$33 million.
Additional components of the strategic plan under new president and chief executive Rick Wilmer will be discussed in ChargePoint’s fourth quarter of fiscal 2024 investor call expected to be held in March of this year.
“As part of a comprehensive business evaluation in my new position as chief executive, we have taken the difficult decision to reorganise our global workforce,” Willmer says.
“After a thorough review of our business strategy and product roadmap, we are heightening our focus on operational excellence and improved efficiencies while we continue with our industry-leading innovation,” he says.
