ChargePoint Holdings (NYSE:CHPT) shares are nearly 9% lower in after-hours trading after the company reported soft Q2 results and disappointing guidance for the current quarter, and said it plans to cut its workforce as part of a reorganization.

The company plans to reorganize its operations and cut 15% of its global workforce, an initiative that will cost $10M in severance payments and related expenses. ChargePoint (CHPT) anticipates the reorganization to save the company $38M (non-GAAP) through operational efficiencies.

For the fiscal second quarter ended July 31, ChargePoint (CHPT) reported a loss of $0.16 per share, narrowing from a loss of $0.35 per share a year ago, and in-line with expectations. Revenue, however, slid 27.6% to just $109M, nearly $5M less than expected. Adjusted gross margin expanded to 26% from just 3% in the same quarter last year on a $28M inventory impairment charge taken in the prior year to address legacy supply chain related costs and supply overruns on a specific product.

Cash and cash equivalents on the balance sheet was $243.7M. ChargePoint’s $150M revolving credit facility remains undrawn and the company has no debt maturities until 2028.

For Q3, ChargePoint (CHPT) expects sales of $85M to $95M, down sequentially from the current reported quarter, and below the consensus estimate of $135.9M.