EVgo Layoffs 2023: What to Know About the Latest EVGO Job Cuts
Source: Felipe Sanchez / Shutterstock.com
Layoffs have been a defining market trend of 2023, and they’re not stopping yet. Yesterday, electric vehicle (EV) charging company EVgo (NASDAQ:EVGO) announced the layoff of 40 workers. However, the company will continue to hire for operational positions. This news comes after a very volatile month for stocks. Now, the small-cap company continues to fall and is showing no signs of recovery following the news of EVgo’s layoffs.
Overall market dynamics are pushing many EV charging stocks lower today, including ChargePoint (NYSE:CHPT) And Charge Blink (NASDAQ:BLACK), although they show more encouraging developments. As they try to recover, EVGO stock appears to be in a race to the downside. This suggests that the market may have little confidence in its prospects.
Does this mean that investors should avoid EVGO in 2023? Let’s take a closer look at the company and its future plans.
A closer look at the EVgo layoffs
Investors have plenty of reason to be optimistic about the EV charging sector this year. Both the US and Europe have prioritized scaling charging infrastructure, leading to opportunities for businesses. However, EVGO stock has done little to boost investor confidence as it has steadily declined over the past six months. As a Alpha wanted Contributor’s notes, its business model remains unproven. Now, EVgo’s layoffs cast a new shadow over the future.
According to a statement released by the company:
“We are aligning our workforce to capture growing market share in an evolving industry. EVgo also focuses on operational excellence and efficiency by optimizing our cost structure with continuous resource investments in growth initiatives.”
Many have cited EVgo as one of the EV charging stocks to buy for growth in the years to come. While news of job cuts is never encouraging, it should be noted that EVgo hasn’t completely stopped hiring. This suggests that it is indeed focused on restructuring. Because of this, investors shouldn’t rule out the company. The layoffs at EVgo could also signal an important turning point.
At the time of publication, Samuel O’Brient held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Posting Policies.