TuSimple lays off 150 more employees as it winds down US operations
TuSimple Holdings, once a leader in U.S. autonomous trucking development, is winding down its operations after a five-month review apparently found no takers for its business that was the first to conduct a driverless pilot two years ago.
TuSimple went through a brutal internal leadership struggle in late 2022 that was at least partly responsible for chasing away Navistar International, its development partner on a purpose-built autonomous truck. The two sides broke up a year ago this week after a 2-and-a half-year partnership.
Unable to align with another OEM partner, TuSimple had to rely on Tier 1 suppliers for redundant steering, braking and other components needed when a truck has no human driver.
TuSimple joins Embark Trucks and Waymo Via in leaving autonomous trucking development this year. Waymo, part of Google parent Alphabet Inc., continues to work with Daimler Truck North America on development of a redundant chassis while pursuing robotaxis. It left open the possibility of resuming autonomous trucking at some point.
TuSimple still pursuing U.S. business in March
As recently as March, San Diego-based TuSimple indicated it would seek another partner and pursue plans for autonomous trucking in the U.S. After a second wave of 300 layoffs in May, the company announced a strategic review in late June. Exiting the U.S. was one possible outcome.
In an 8-K filing with the U.S. Securities and Exchange Commission on Monday, TuSimple said it was laying off 150 of its remaining U.S. employees. Those left will focus on winding down operations. Most of the company’s remaining 700 full-time employees will be in China and Asia, where TuSimple has focused its efforts after suggesting it would try to sell those operations.
TuSimple laid off more than 300 employees in December 2022 — about a quarter of its U.S. workforce. At the time of the layoffs in May, the company shuttered an autonomous freight-hauling operation that used safety drivers. TuSimple celebrated 10 million autonomous miles in March between the layoff rounds.
Despite assertively promoting its patent portfolio, TuSimple apparently attracted no meaningful offers.
Latest layoffs take out 75% of remaining U.S. workforce
The latest layoffs amount to 75% of the remaining U.S. workforce and 19% of its global employment, the 8-K said.
“The company anticipates that the remaining U.S. workforce will focus on winding down the company’s U.S. operations, including through sales of U.S. assets, and assisting with the strategic shift to the Asia-Pacific region,” the SEC filing said.
The company’s board of directors approved the window last Thursday. TuSimple expects one-time charges of approximately $7 million to $8 million in connection with the restructuring. That includes cash expenses for employee transition and severance, employee benefits, and related costs.
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TuSimple prepares to exit US autonomous trucking market
TuSimple cuts 300 more US jobs, will keep China operations
Click for more FreightWaves articles by Alan Adler.
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