NEW YORK–(BUSINESS WIRE)– Volta Inc. (NYSE: VLTA) today announced an organizational realignment to reduce costs and drive strategic priorities. This refocuses resources on accelerating the company’s successful digital advertising business, collaborating with Volta’s numerous retail and commercial property partners, and driving public-private partnerships that align with the $7.5 billion of funding the Federal government has allocated towards public EV charging infrastructure buildout under the Bipartisan Infrastructure Law.

Under the strategic reprioritization, Volta is focused on:

• Streamlining the Organization: Today’s announcement represents a 10% reduction in current full-time employees. As of today, Volta has reduced approximately 18% of its full-time employees through other workforce reductions and organic attrition since June 1, 2022.
• Delivering Additional Cost Savings: Volta is implementing additional cost savings initiatives through tightening business processes, limiting the use of outside consultants, consolidating teams and its three San Francisco offices into one, and managing marketing and administrative costs.
• Competing for Federal Funds: Volta’s model is attractive to municipalities, as demonstrated by its recent collaboration with the City of Hoboken. The company’s dedicated team is well-positioned as a public-private partner for state and federal government funding, as evidenced by Volta’s relationship with the State of Michigan and DTE Energy. Volta intends to continue prioritizing EV charger installations that qualify for government-provided funds by leveraging its award-winning PredictEV® infrastructure planning software. By analyzing multiple data sources, including local economic and equity data, PredictEV can identify locations within the company’s pipeline of more than 8,200 EV charging stalls signed or covered under master service agreements (MSAs) that satisfy the government’s requirements.

“The Volta Board of Directors and senior executives are taking difficult but important steps to align the business with current market dynamics and position the company for long-term success,” said Vince Cubbage, Interim Chief Executive Officer of Volta. “Despite near-term challenges, there is significant opportunity ahead in the EV charging market as adoption accelerates and federal funding for EV infrastructure is deployed. We are evaluating every aspect of the business to set Volta up to capture this opportunity through disciplined management, preservation of capital, reduction of operating expenses, and an increased focus on public-private partnerships that more efficiently grow our network and satisfy the needs of all of our stakeholders.”

Financial and Install Outlook Update

The cost efficiency measures announced today intend to align Volta’s business with current market conditions. In addition to the risk factors outlined in Volta’s previous disclosures, these factors include: the advertising environment, particularly as automotive brands delay advertising spend due to inventory shortages; limited electrical transformer availability affecting DC Fast charger installations; and the impact of the Q4 shopping season on construction availability at commercial properties.

Given the ongoing execution of Volta’s strategic reprioritization, combined with these market conditions and an uncertain macroeconomic environment, the company is revising its Q3 revenue guidance to between $13.5 million and $14.5 million. Furthermore, the company is withdrawing its full year 2022 revenue and install guidance until further notice. Volta remains committed to securing additional funding — including government incentives that will become available in 2023 — and pursuing further cost savings initiatives.

Billboard Insider’s take:  Are we starting to see the national ad market weaken?  Insider suspects Volta’s mostly national ad business is starting to feel the impact of recession fears.  Volta cut its 3rd quarter estimated revenue by 20%.  This means 3rd quarter 2022 revenues will be down 5-12% from the second quarter. Not good news for a hockey stick startup.  Here are the numbers.

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