Website Docusign Inc. on a laptop arranged at Dobbs Ferry, New York, USA, on Thursday, April 1, 2021.
Tiffany Hagler-Geard | Bloomberg | beautiful pictures
DocuSign will lay off 9% of its workforce as part of a major restructuring plan, the company announced Wednesday.
This plan is designed to support the company’s profit and growth goals and improve the company’s operating profit margin. As of January, DocuSign had 7,461 employees, and it said the restructuring plan would be largely complete by the end of fiscal 2023.
It is expected to incur charges of between $30 million and $40 million, mostly in the third and fourth quarters of fiscal year 2023, as part of the changes.
The maker of digital signature software has received a larger wave of interest among investors during the Covid pandemic as consumers and corporate employees increasingly rely on digital ways to sign documents. . But interest has waned, and the stock is down 65% so far this year.
Some companies downgrade the company’s stock in June after first-quarter earnings fell short of analyst estimates. Dan Springer, the former CEO, resigned later that month. DocuSign previous notice this month it rented a Alphabet executive, Allan Thygesen, is its next CEO.
Shares of DocuSign were up 2% early Wednesday.
