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    DocuSign joins growing list of tech layoffs; trim workforce by 10%

    DocuSign had 7,461 employees as of January 31, 2022, before its first layoff in September last year.

     

    American e-signature and agreement management company – DocuSign – announced on Thursday to trim its workforce by 10%. This is the company’s second layoff in five months for the company and reportedly will impact around 700 employees.

     

    The company said its restructuring plans are designed to support DocuSign’s growth, scale, and profitability objectives. “As part of the Restructuring Plan, the Company expects it will restructure and reduce its current workforce by approximately 10%, primarily in the Company’s worldwide field organization,” DocuSign said in a U.S. Securities and Exchange Commission filing.

     

    Currently, the cost of restructuring is estimated at approximately $25 to $35 million mainly consisting of cash expenditures including those incurred for employee transition, notice period, and severance payments, among others. Other non-cash expenses include the vesting of share-based awards, the company said. A majority of restructuring expenses will be incurred in the first quarter of the financial year 2024 and will be completed by the second quarter of the same FY.

     

    DocuSign had 7,461 employees as of January 31, 2022. It announced its first set of layoffs in September wherein the company reduced its workforce by 9%.

     

    A Reuters report highlighted that the price of DocuSign shares rose about 200% in 2020 when the Covid-led lockdowns boosted online work culture. The company’s share prices fell by nearly a third in 2021 and by 64% in 2022, the report added.

     

    The move came at a time when other major tech giants like Alphabet, Twitter, and Microsoft, among several others, are laying off thousands of employees in an attempt to gear up for a global economic slowdown.

     

    Earlier this week, American multinational tech giant Meta reportedly delayed finalizing the budgets of several of its teams, fuelling speculations of another round of layoffs by the company. Meta had laid off more than 11,000 employees or almost 13% of its workforce in its biggest round of layoffs ever in November.

    Author

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    Monika Asthana

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