Editor's note: This story has been updated to correct that 30 percent of the global workforce is being cut.
TuSimple Holdings Inc. said on Thursday it will cut 30 percent of its global workforce under a restructuring as the autonomous driving technology company looks to preserve its balance sheet amid a funding crunch in the sector.
The shares of the company closed up 14 percent on Thursday. All the cuts took place in U.S. offices.“Prior to the layoff, we had approximately 550 employees in the U.S. and post reduction in force we will have approximately 220," the company said in a statement. "We believe this is the right number of employees to work toward achieving our goals while preserving the cash on our balance sheet as well as retain strong publicly listed company capabilities.”
The San Diego-based company also said it is no longer seeking strategic alternatives for its Asia Pacific business, backtracking on plans it announced in March last year for the unit.
Industry executives and investors have been worried about the funding poured into the self-driving technology sector at a time when access to capital has been tight.
The restructuring is expected to cost the company between $12 million and $13 million, it said in a statement.
The move comes days after the firm received a delisting notice from Nasdaq for not filing its quarterly report on time.
TuSimple said following restructuring it would continue to retain its level 4 technology development capabilities and focus on autonomous freight transportation technology.
It follows a restructuring the company announced in December and cut about 350 jobs.