A major autonomous truck technology company is expected to announce the termination of hundreds of workers on Tuesday, according to several reports.
San Diego-headquartered TuSimple is expected to announce the layoff at least of half of its 1430 full-time employees on December 20, 2022, according to the Wall Street Journal.
In addition to the layoffs, TuSimple also plans to scale back testing and development of self-driving truck technology in an attempt to save money. It’s expected that much of TuSimple’s Tucson, Arizona, operation will be downsized in cost-cutting efforts.
The report cites a number of factors in TuSimple’s decision to lay off employees. These include fallout from an April 2022 TuSimple truck crash caught on dash cam and the October removal of the company’s CEO following allegations that TuSimple shared confidential information with Chinese startup Hydron Inc., which triggered an investigation by the Securities and Exchange Commission (SEC) and the Committee on Foreign Investment (CFIUS).
Earlier this month, truck maker Navistar announced that it would end its partnership with TuSimple in the wake of the CEO shakeup and federal investigations.