DocuSign, a major e-signature software company has made an announcement pertaining to losing a great chunk of its workforce.
As per the officials at the e-signature company, they are going to cut off 10% of their overall workforce. According to people familiar with the matter, the 10% cut translates to about 700 employees.
DocuSign Keeps Laying Off Employees
This is not the first layoff the company has made in the past 6 months. It was in early January 2022 when the company revealed its overall employee base.
At that time, the company revealed that its overall workforce throughout the globe is 7,461. However, it was in September 2022 when the company announced its first round of layoffs.
In September 2022, the company announced letting go of 9% of its overall workforce. The company’s decision is eventually going to impact around 700 employees.
Statement by DocuSign
The company executives, want to ensure that their company is able to make it through the difficult circumstances.
They want to do whatever they can to deal with the situation and cutting off extra resources is what seemed to be the best idea.
They are aiming to work on increasing the profitability and scalability of their company. In addition to these, they want to work on the growth of their business as well.
As the profitability of their business increases, the future of their operations will be secured. They will be able to perform to the fullest of their potential and will be able to negate difficult times.
It is a difficult decision for DocuSign given the company’s performance since the beginning of 2022. They know that the impairment is going to be a huge hassle for their company’s finances but it is a call they are willing to make.
According to the officials, there is an impairment charge that they are willing to pay for releasing their employees.
The particular charge is going to cost them somewhere between $25 million and $35 million. As predicted by the officials, the layoffs will be taking place somewhere in the fiscal first quarter of 2024.
The restriction of the company is going to take place in the fiscal first quarter and it is going to end by the end of the fiscal second quarter of 2024.
DocuSign Joins the List
Given the performance of the tech sector in the year 2022, it is no surprise for another tech company to announce the laying off of employees.
Several tech companies have continued laying off their employees since the end and the beginning of the year 2023. Even now, tech companies are busy laying off their employees and DocuSign is one of them.
Another reason the executives at DocuSign have given for laying off its employees is the constant surge in interest rates. The demand among consumers is also slowing down for the services offered by DocuSign.
This is the reason why the company is forced to cut down on its costs and laying off employees is appearing to be the best idea so far.
Although DocuSign is a major company its employee base is small compared to the likes of other major tech companies.
Major companies such as Salesforce, Google, Meta, and Amazon have also cut down on jobs due to the macroeconomic downtrends. This has resulted in thousands of employees losing their jobs.
It may not be an exaggeration to say that in total, tech companies have laid off more than half a hundred thousand employees.
So far, the largest layoff that has been reported is by Amazon, which reportedly announced laying off more than 19,000 employees.
Although the decision DocuSign made was not positive for the employees its outcome was promising. After the announcement, the e-signature company’s shares surged by 3%.
At the time of writing, the company’s shares are trading at $64.47 per share.