As previously disclosed, on December 15, 2022, the Board of Directors (the “Board”) of TuSimple Holdings Inc. (the “Company”) authorized a broad restructuring plan to rebalance the Company’s cost structure in alignment with its strategic priorities. On May 16, 2023, the Board authorized an additional restructuring plan to further align the Company’s cost structure with its strategic priorities (the “Restructuring Plan”). The Restructuring Plan includes a reduction in workforce by approximately 300 employees, or 30% of the Company’s global workforce.
Following the workforce reduction per the Restructuring Plan, the Company’s global full-time employees (“FTEs”) are expected to be approximately 750 FTEs.
The Company currently estimates that it will incur one-time charges of approximately $12 million to $13 million in connection with the Restructuring Plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits, and related costs. The majority of the restructuring charges per the Restructuring Plan will be recorded in the second quarter of 2023, and the full execution of the Restructuring Plan will be substantially complete by the end of fiscal year 2023.
