UiPath, a leading automation software company, announced plans to reduce its workforce by 10%, approximately 420 jobs, as part of a comprehensive restructuring strategy. This information was disclosed in a filing with the SEC on Tuesday.
The majority of these layoffs will be completed by the end of the first quarter of fiscal 2026, which concludes next April.
Following the announcement, UiPath shares fell by about 7% on Tuesday and have now lost over half their value this year. In contrast, the Nasdaq has gained 23% over the same period. Since its IPO in 2021, one of the largest U.S. software offerings ever, UiPath has experienced a significant slowdown in revenue growth.
Despite reporting better-than-expected fiscal first-quarter earnings in May, UiPath revised its full-year guidance downward, now projecting revenue between $1.4 billion and $1.41 billion, compared to the previous estimate of $1.55 billion to $1.56 billion. This new forecast represents an annual growth rate of about 7.5%, a sharp decline from the 24% growth seen the previous year.
UiPath specializes in creating software that automates repetitive tasks. In May, the company announced that CEO Rob Enslin would resign effective June 1, to be succeeded by co-founder Daniel Dines, who had stepped down as co-CEO in January. This leadership change caused the stock to drop by 30%.
On Tuesday, UiPath revealed that it expects to incur $15 million to $20 million in costs related to the layoffs, with total restructuring costs anticipated to be between $17 million and $25 million. The company had previously announced two rounds of job cuts in 2022.
“These changes reflect efforts to reshape the organization by streamlining the company’s structure, particularly in operational and corporate functions, better prioritizing our go-to-market investments, and focusing our research and development investments on artificial intelligence and driving innovation across our platform,” UiPath stated in Tuesday’s announcement.
Source: CNBC
