San Francisco-based DocuSign (DOCU) will lay off 10% of its employees, the company said Thursday in a Securities and Exchange Commission filing.
This is the e-signature company’s second round of layoffs in less than a year. In September 2022, the company announced cuts to 9% of its workforce, which at the time amounted to 7,461 employees across 17 offices, meaning that roughly 671 people lost their jobs.
The company is enacting the layoffs as part of a “restructuring plan,” that will “support the Company’s growth, scale and profitability objectives,” according to the SEC filing.
DocuSign confirmed today that as part of its new restructuring strategy, workforce cuts will be made.
Around 10% of DOCU’s global workforce will be let off as part of the strategy. Most of the job losses will occur in the global field organisation. #DocuSign #layoffs #Nasdaq
— Minipip (@Minipip_UK) February 16, 2023
DocuSign expects to incur charges of approximately $25 million to $35 million, primarily in the first quarter of fiscal 2024, as a result of the layoffs.
DocuSign, which went public on the Nasdaq in April 2018, specializes in the development of electronic signature management software. That software allows companies to issue documents to clients to sign electronically, across many different types of devices and platforms.
During its earlier round of layoffs, company executives took responsibility for the cost-cutting decision, admitting to over bloating the company during the pandemic high and realizing the company could not continue down that path.
“We are recalibrating our team to address the rapidly-shifting market dynamics. This week we made tough decisions to reduce our workforce to adjust to our changing business priorities,” the company said in a September statement.
DocuSign joins the list of tech companies to announce layoffs in 2023.
Zoom, Coinbase, Yahoo, Dell and others have all announced significant job cuts as they continue to suffer the consequences of over-hiring during the pandemic tech boom. According to the tech layoff tracker website Layoffs.fyi, there have been 364 tech companies that have announced layoffs in 2023, with a total of 105,514 employees laid off.
As of 11:12 a.m. ET on Thursday, shares of DocuSign were trading at $67.84, up $2.35, or 3.59%.
