UiPath will cut 5% of its workforce as part of a restructuring plan

UiPath IPO on the New York Stock Exchange.

Source: NYSE

UiPath will cut about 5% of its total workforce as part of a restructuring plan, according to a new SEC statement.

The company, a provider of office automation software, reported that as of April 30, 2022, it had 4,200 employees. Most layoffs are expected to take place by the end of July.

The UiPath board approved the decision to cut staff, citing the need to increase profits by restructuring its market organization, the statement said.

The company estimates it will spend $ 15 million on restructuring costs, mostly to pay for weekends and compensation.

A spokesman told CNBC that UiPath’s layoffs were not related to market conditions.

Shares of UiPath fell 2% on Monday and fell 50% since the beginning of the year. But shares rose about 20% a month after the company exceeded its recommendations and raised its earnings forecast for the first fiscal quarter announced on June 1st.

“In the context of ongoing business priorities, UiPath is pursuing restructuring actions that will primarily focus on the effectiveness of our market entry organization,” the spokesman said, noting that the reduction would help simplify its market entry. . approach the market and lead to higher sales performance and better market segmentation.

“We are talking about the continuation of sustainable, profitable growth. We want to thank the members of our team who are leaving – we appreciate their incredible talent and contribution in support of UiPath and our mission, ”the spokesman added.

The software provider has more than 45 offices in the US, Europe and Asia.

“The announcement suggests that PATH is increasingly focusing on profitability amid growing investor control over limited-yield technology stocks and the FCF.” Cowen analysts said in a note to investors on Monday. “It has demonstrated its commitment to its long-term EBIT target of 20%, and this news reflects the first major changes introduced since its recent senior management appointments (new CEO and CEO).”

UiPath will cut 5% of its workforce as part of a restructuring plan

Source link UiPath will cut 5% of its workforce as part of a restructuring plan

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