ChargePoint Holdings, Inc. CHPT shares are experiencing a marked decline this Wednesday, plummeting by over 20% in the last week. Let’s delve into the reasons behind this disconcerting slump.

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What You Should Know:

In a recent development, ChargePoint disclosed a strategic revamp intended to enhance its fiscal performance and position itself for sustained expansion, which encompasses a workforce reduction of approximately 12% throughout its global operations.

The company anticipates this restructuring to culminate in yearly cost savings of about $33 million, offset by $14 million earmarked for restructuring charges, inclusive of severance and related expenditures.

Furthermore, ChargePoint reiterated its financial prowess, with access to roughly $397 million in cash reserves and an additional $150 million through an untapped revolving credit facility. It also reaffirmed its target of attaining positive non-GAAP adjusted EBITDA by the fourth quarter of the year 2024.

Ominously, following this pivotal announcement, ChargePoint shares nosedived by over 20%. According to data derived from Benzinga Pro, the stock is now trading below its 50-day moving average of $2.37, with 22.92% of its available shares being short sold.

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CHPT Price Action: Per Benzinga Pro, ChargePoint Holdings shares have plummeted by 4.72%, now standing at $1.715 as of the time of this publication.

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