Autonomous truck manufacturer TuSimple announced plans to lay off 25% of its workforce (reportedly around 350 employees) as a part of a broader restructuring plan to ensure continued operations of the company.

The layoffs will affect its staff in the US only (employees in San Diego, Arizona, and Texas), as it is already in the process of selling off its Asia-focused business. However, it has not specified what teams or any specific regions might be affected by the layoffs.

The company is also scaling down its freight expansion which adds limited value to its ongoing tech development. This includes unprofitable trucking lanes and operations that use older generations of autonomous software.

The company also noted that around 80% of the remaining employees are attached to the R&D division and will be working on areas such as hardware and software resilience, reliability, safety, and information security. Going forward, the company will focus on validating and commercializing its autonomous trucking technology with its shipping partners.

The restructuring plans will cost TuSimple roughly USD 10–11 million, and it intends to save USD 55–65 million annually via restructuring and layoffs.