DocuSign to cut workforce by 9% as part of restructuring plan

The Docusign Inc. website. at a laptop held in Dobbs Ferry, New York, USA on Thursday, April 1, 2021.

Tiffany Hagler-Geard | Bloomberg | Getty Images

DocuSign will lay off 9% of its workforce as part of a major restructuring plan, the company announced Wednesday.

The plan is designed to support the company’s growth and profitability goals and improve its operating margin. In January, DocuSign had 7,461 employees and said the restructuring plan will be largely complete by the end of fiscal 2023.

Shares of DocuSign were up 5% at 10:35 a.m. ET.

It expects to incur charges of between $30 million and $40 million, primarily in the third and fourth quarters of fiscal 2023, as part of the changes.

The e-signature software maker enjoyed a surge in investor interest during the Covid pandemic as consumers and business workers became more reliant on digital ways to sign documents. But interest has waned and the stock is down 65% so far this year.

Several firms downgraded the company’s stock in June after first-quarter earnings fell short of analysts’ estimates. Dan Springer, the former CEO, stepped down later that month. DocuSign announced earlier this month that it hired an Alphabet executive, Allan Thygesen, as its next CEO.

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