EV Charging company ChargePoint has announced plans to reduce costs by laying off 15% of its workforce. 50% of the reductions are in sales and marketing, with the remainder split between R&D and G&A.
The move comes after ChargePoint announced it was laying off 12% of its workforce in January 2024.
CEO Rick Wilmer and CFO Mansi Khetani explained the decision on the company’s Q2 2025 Earnings Call held on September 4th, 2024.
Rick Wilmer, ChargePoint CEO:
I will begin with some news. To improve our operational efficiency and right-size our business for market conditions, we have reduced our non-GAAP operating expense by an estimated $38 million on an annualized basis. We are reducing our headcount by approximately 15% and trimming non-personnel expenses in all areas of the company with the majority of reductions in sales and marketing.
This is an offensive move. These reductions will enable us to move faster by streamlining operations. For example, we are flattening the sales and marketing organization, increasing speed and focus and maximizing resources directly related to revenue generation. We have done this successfully in the past cutting almost $90 million of annualized non-GAAP OpEx from a high point of $89 million in Q2 of last year to $66 million in Q2 of this year, streamlining our resources while accelerating our product road map.
All these changes enhance our core go-to-market and innovation capabilities to keep us dominant when the market returns.
Mansi Khetani, ChargePoint CFO:
Though we don’t typically guide on operating expenses, given the reorganization announced today, we wanted to help reset everyone to a new level for the remainder of this year. With an annualized reduction of approximately $38 million of non-GAAP operating expenses, we expect non-GAAP operating expenses to be in the low $60 million in Q3 and to reduce further in Q4 when we will see the full-quarter impact of the reductions.
About 50% of the reductions are in sales and marketing, with the remainder split between R&D and G&A. We are streamlining functions and becoming more efficient across the company. We are focusing on leveraging the channel, eliminating redundancies with fewer people touching every deal while increasing the mix of quota-bearing reps. We are committed to be adjusted EBITDA positive. The fourth-quarter target previously laid out was dependent on modest revenue growth in a better macro backdrop.
