UiPath co-founder and CEO Daniel Dines spoke to the audience on the third day of the Internet Summit 2021 in Lisbon’s Parque des Nations.
Bruno de Carvalho | Bruno de Carvalho Soup Pictures | Light Rocket | Getty Images
UiPathThe automation software developer said in a filing with the SEC on Tuesday that it will cut 10% of its workforce, or about 420 jobs, as part of a broader restructuring.
The company said most of the layoffs will be implemented by the end of the first quarter of fiscal 2026. The quarter ends next April.
UiPath shares fell about 7% on Tuesday, and its market value has shrunk by more than half this year. The Nasdaq gained 23% during that period. UiPath’s revenue growth slowed sharply after its 2021 initial public offering, one of the largest U.S. software offerings ever.
Although UiPath reported better-than-expected first-quarter earnings in May, the company lowered its full-year guidance and said it now expects earnings to be in a range of $1.4 billion to $1.41 billion, compared with previous guidance of $1.55 billion to $1.56 billion. One hundred million U.S. dollars. The current forecast annual growth rate is about 7.5%, down from 24% the previous year.
UiPath develops software that automates repetitive tasks. The company announced in May that Chief Executive Rob Enslin would resign on June 1 and would be replaced by co-founder Daniel Dines, who resigned as co-CEO in January. official position. The move sent the stock down 30%.
UiPath said on Tuesday it expected to incur $15 million to $20 million in layoff-related costs, with total restructuring costs between $17 million and $25 million. The company previously announced two rounds of layoffs in 2022.
UiPath said: “These changes reflect the company’s efforts to reshape the organization, including streamlining the company’s structure, especially in operations and corporate functions, better prioritizing our listing investments, and focusing our R&D investments on artificial intelligence. , and promote innovation across the entire platform.
—CNBC’s Rohan Goswami contributed to this report.
Subscribe to CNBC on YouTube.
