'I am deeply sorry that we have to do this again,' CEO says
Software firm DocuSign has announced that it will be laying off roughly six per cent of its workforce as part of a restructuring plan aimed at supporting the company's "financial and operational efficiency."
This company will lay off approximately 400 employees from its over 7,300-strong workforce, with a majority of the impacted positions coming from the Sales and Marketing organisations.
The move is part of a restructuring plan that the company said was designed to strengthen and support its financial and operational efficiency.
"This is a painful decision, and it is not one I, the leadership team or the board make lightly," CEO Allan Thygesen said in a message to employees. "Of course, I am most concerned for our colleagues who will be leaving, but I am also aware that layoffs are disruptive and hard on company culture, especially when they happen more than once."
DocuSign previously laid off staff 10% of its staff in February 2023, just months after Thygesen stepped in as CEO.
"I am deeply sorry that we have to do this again," he said.
According to the CEO, they resorted to layoffs after reducing operating costs for FY25 and realising that "further action was needed."
Impacted employees in the United States and Canada are expected to get notified if their role has been eliminated. For layoffs outside the US and Canada, Thygesen said they will follow local guidelines and regulations to determine what roles might be impacted.
"Each ELT member will send their teams separate notes and set up meetings to explain specific changes to each organization," the CEO explained.
In its latest report filing, the company said it is expecting to incur approximately $28 to $32 million in non-recurring restructuring charges as part of its plan, including cash expenditures for employee transition, notice period and severance payments, employee benefits, as well as other related costs.
It noted that majority of the charges will be incurred in the first quarter of fiscal 2025, and the restructuring plan will be "substantially complete" by the end of the second quarter of fiscal 2025.
DocuSign joins the list of employers that are announcing job cuts this 2024, including the UPS, eBay, Snap, among others.
