DocuSign to lay off 10% of its workforce, or about 700 employees
- E-signature software company DocuSign on Thursday announced plans to cut around 10% of its workforce.
- The cuts are on top of DocuSign's previous round of layoffs last September, which affected 9% of its head count.
E-signature software company DocuSign on Thursday announced plans to cut around 10% of its workforce.
DocuSign had 7,461 employees in January 2022 before it announced an earlier round of layoffs last September that impacted 9% of its workforce. The company said the latest cuts will impact about 700 employees.
DocuSign said it is cutting employees in order to support the company's growth, scale and profitability objectives. It will take an impairment charge of approximately $25 million to $35 million, primarily in the first quarter of fiscal 2024, as a result of the layoffs.
The restructuring plan will likely be complete by the end of the second quarter, the company said.
DocuSign joins a growing list of tech companies that have announced layoffs as rising interest rates and slowing consumer demand have triggered fears of a recession and spurred companies to cut costs. Twilio on Monday said it would cut 17% of its workforce, or about 1,500 jobs, while Amazon, Meta, Google and Salesforce have announced significant job cuts in recent months.
"The restructuring mainly impacts our worldwide field organization," a DocuSign spokesperson told CNBC. "This action allows us to reshape the company to more effectively position us for profitable growth, while freeing up resources for investments."
DocuSign shares were up about 3% in afternoon trading on Thursday.