(Reuters) -Blink Charging said on Tuesday it would lay off about 14% of its global workforce as part of a cost-reduction plan, as the electric vehicle charging equipment maker tackles weaker demand.
Higher borrowing costs and a growing consumer preference for gasoline-electric hybrids have dampened EV sales, putting pressure on makers of both electric vehicles and the associated charging infrastructure.
Blink's job cuts would result in annualized savings of about $9 million and would be completed in the first quarter of 2025, the company said in a statement.
In May, Elon Musk's Tesla (NASDAQ:TSLA) had also laid off employees from its vehicle charging business, including the head of the division, taking automakers who use the Tesla Supercharger network by surprise.
"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," CEO Brendan Jones said.
In August, Blink cut its annual revenue forecast and delayed its target for achieving positive adjusted EBITDA from December 2024 to 2025.
As of December last year, Bowie, Maryland-headquartered Blink employed 706 people, according to its annual report.
The company had sold, contracted, or deployed nearly 85,000 charging stations, as stated on its website.