Electric vehicle (EV) charging equipment manufacturer Blink Charging Co. (NASDAQ:BLNK) said on Tuesday that it will lay off about 14% of its global workforce in an attempt to reduce operational costs.
What Happened: The layoff will begin immediately and is expected to result in annualized savings of about $9 million, the company said. The layoffs will be completed in the first quarter of 2025, the company added.
"The timing of these cost-cutting measures, as indicated in our last earnings announcement, is a proactive step to adapt to current market conditions while preserving our long-term strategy," said company President & CEO Brendan Jones.
Blink had 706 employees as of the end of last year, implying that the layoff will impact 99 people at the company.
"We believe the current economic and market challenges facing the EV industry are temporary," added Blink Chief Operating Officer and incoming CEO Michael Battaglia. "We are very optimistic about the future. The operational changes we are announcing today will help us reduce costs and improve our financial performance right away."
Why It Matters: During the second quarter, Blink contracted, deployed, or sold 4,106 charging stations. Jones then said that the company's sales performance was impacted by softening EV demand.
Blink Charging reported a total revenue of $33.3 million in the quarter, marking an increase of 1.3% from the corresponding period last year. However, the company's gross profit fell to $10.7 million, down from $12.3 million last year.
Last month, Blink lowered its full-year 2024 revenue guidance from a range of $165 million to $175 million to a new range of $145 million to $155 million. The company also updated its timeline to achieve positive adjusted EBITDA to 2025 from its previous timeline of December 2024.
EV giant Tesla Inc., which also manufactures EV charging equipment, laid off most members of its supercharging team in April.
Price Action: Blink shares closed up 5% at $1.88 on Tuesday. The stock is down nearly 41% year-to-date, according to data from Benzinga Pro.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
- Embraer-Controlled Eve Air Mobility Ropes In Former Rolls-Royce Exec As Chief Commercial Officer
Photo courtesy: Blink Charging
