Updated February 7th, 2024 at 17:07 IST
DocuSign lays off 400 employees in sales, marketing
The company slashed 6% of its workforce, joining other tech and American companies in job cuts
Another company lays off: American online signatures platform DocuSign has slashed 6 per cent, or 400 of its workforce as part of its restructuring, according to a regulatory filing.
This makes the e-signature software company the latest entrant in the list of technology companies letting go of employees since the beginning of 2024.
Sales and marketing departments will be impacted the most by this round of job cuts, the company has said. DocuSign had 7,336 employees at the end of 2023.
“As part of the Restructuring Plan, the company expects it will restructure and reduce its current workforce by approximately 6 per cent, with the majority in the company’s sales and marketing organisations. The Company currently estimates that it will incur charges of approximately $28 to $32 million in connection with the Restructuring Plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits, and related costs as well as non-cash expenses related to vesting of share-based awards."
A majority of the restructuring charges will be incurred in the first quarter of FY25, with the execution of the restructuring plan expected to be completed by the end of the second quarter of fiscal 2025, it added.
The development comes after private equity firms Bain Capital and Hellman & Friedman have halted discussions on acquiring DocuSign, Reuters reported.
DocuSign was to be acquired in a $13 billion takeover bid with the private equity firms showing interest in the deal. Even as fee discussions have led to the talks cooling off, the talks are expected to resume.
The company saw a surge in market cap of over $60 billion in 2021 on the back of technological advancements amid remote working. The company's valuation is now edging close to its pre-pandemic levels at $10 billion after the world has opened up.
This is not the first set of layoffs for DocuSign, who had let go of 9 per cent of its employees, and then 10 per cent further in 2022, the first post-pandemic year.
Published February 7th, 2024 at 17:07 IST