TuSimple Announces U.S. Operations’ Restructuring

TuSimple Announces U.S. Operations’ Restructuring

The reorganization of U.S. operations and a reduction in workforce will allow more focus on development efforts.

TuSimple, global autonomous driving technology company, announced a restructuring plan for its U.S. operations that is intended to enable the company to continue maturing its technology while preserving the company’s balance sheet. The company also announced it is no longer seeking strategic alternatives for its Asia Pacific subsidiaries.

In light of current market conditions, TuSimple announced it is reorganizing its U.S. operations and better aligning staffing levels with the company’s goals. This includes an approximately 30% reduction to TuSimple’s global workforce. The reduction in workforce will only impact TuSimple locations within the U.S.

Rooted in the tenets of the “V-model,” an industry standard for developing complex systems, TuSimple says the new organizational structure for U.S. operations is designed to prioritize validation and testing of the company’s Level 4 autonomous technology, and to improve organizational accountability and reporting lines. The restructuring is expected to lead to approximately $12 million to $13 million in one-time charges, consisting primarily of severance and WARN Act-related expenses, and result in an expected annual cash compensation expense savings of approximately $64 million to $68 million. Including the restructuring in December 2022, total annual cash compensation savings are expected to be in excess of $120 million, according to the company.

“As we relaunch TuSimple, we have taken a variety of factors into consideration including further deterioration of global economic growth, significantly reduced capital availability in the self-driving industry and redundant hardware availability,” said Cheng Lu, president and CEO of TuSimple. “Given these factors, we believe this restructuring, while difficult, aligns our capital spend with the pace of overall industry readiness and improves our long-term competitive position. These decisions are not made lightly as they impact many of our colleagues. Our company would not be where it is today without their contributions. For that, they have our utmost gratitude.” 

TuSimple Asia Pacific SubsidiariesUpdate

The company says in the best interest of shareholders to continue owning and operating its Asia Pacific subsidiaries, it is no longer exploring a transaction. In the past year, TuSimple’s Asia Pacific subsidiaries have continued to make progress working with several OEMs on Level 4 and Level 2+ commercial projects. In April 2023, TuSimple announced that its proprietary, high-performance central compute unit – TuSimple Domain Controller (TDC) – is expected to be ready for commercial production at the end of 2023.

For more information, visit www.tusimple.com.

You May Also Like

Connected Vehicles Need the Right to Repair

A fleet of connected vehicles delivers many benefits to society and the motoring public, but critical technical decisions need to be made.


A modern vehicle is a powerful computer on wheels with dozens of interconnected modules, sensors and controllers. The technology works together to deliver the cleanest, safest and most fuel-efficient form of transportation ever. Automotive engineers have long dreamed of connecting these advanced vehicles to one another (V2V) and to roadside infrastructure (V2I). When vehicles can sense and communicate with one another, accidents can be avoided, traffic flow and speed can be smoothed, emergency vehicle response times can be improved and more. With these same vehicles connected to other devices such as traffic signals, pedestrians with mobile phones and other infrastructure (V2X – vehicle to everything), safety goes up and fuel consumption goes down. A fleet of connected vehicles delivers many benefits to society and the motoring public. Early examples of Intelligent Transportation Systems (ITS) are deployed in the US and around the world. Billions of dollars have been allocated in the United States to deploy ITS on hundreds of miles of roadways and in municipal pilot sites in Tampa, Arizona, Utah and Michigan.

Opus IVS Adds Tech Advancements, Extended ADAS Support

The new Giotto software update offers comprehensive support for MY24 vehicles.

AAM’s Next-Gen Electric Drive Systems on Display at CES

Among the products showcased at CES will be AAM’s electric drive units, e-Beam technology and component technology.

AAM's Next Gen Electric Drive Systems on Display at CES 2024
Shop-Ware Partners with Amazing 7 on Phone Integration

The integration allows repair shop staff members to gain valuable context to incoming phone calls and respond to customers accordingly.

Continental, Synopsys Team Up on Automotive Software Development

The collaboration aims to accelerate the development and validation of software features and applications for the Software-Defined Vehicle.

Other Posts

Epicor Unveils Digital Cataloging, Future Plans

The new catalogs use Epicor-validated, ACES-compliant data and an “Intelligent Search” feature to find the right part quickly.

Epicor digital catalog
Epicor Launches Automotive B2B eCommerce Platform

The Epicor Commerce for Automotive platform features multi-seller support and parts lookups for distributors and their customers.

Epicor commerce for Automotive
Marelli Launches Fuel System for Hydrogen Propulsion Systems

Marelli will present a variety of new technology at the CTI Symposium in Germany, Dec. 5-6.

DENSO Announces Organizational and Executive Changes

The changes represent the company’s shift from an auto parts supplier to supporting a mobility-centered society.