San Francisco, California – DocuSign, a prominent electronic signature company, has announced a significant restructuring plan that includes laying off 6% of its workforce. This decision comes as the company aims to improve its financial and operational efficiency.
The layoffs are expected to affect around 440 jobs out of the company’s workforce of 7,336 employees, according to the most recent filing with the U.S. Securities and Exchange Commission. The majority of the impacted employees will come from the sales and marketing organizations.
Following the announcement, the company’s shares experienced a sharp decline in premarket trading, tumbling more than 6%. Despite this development, DocuSign has stated that it expects to “meet or exceed” its fourth-quarter and fiscal year 2024 guidance as outlined in a previous release in December.
The restructuring plan is anticipated to be largely completed by the end of the company’s second fiscal quarter of 2025. Further details about the plan will be shared when DocuSign releases its fourth-quarter results.
This move by DocuSign underscores the challenging business environment faced by many companies as they navigate economic uncertainties and strive for greater efficiency. The restructuring reflects the company’s proactive approach to adapting to changing market dynamics and aligning its operations with long-term growth objectives.