The company will lay off 10% of its employees | Wilnesh News

UiPathThe company, an automation software developer, said in a filing with the U.S. Securities and Exchange Commission that it would cut 10% of its workforce, or about 420 jobs, as part of a broader restructuring. U.S. Securities and Exchange Commission Tuesday.

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 fiscal first-quarter earnings in May, the company lowered its full-year revenue guidance and said it now expects revenue to be between $1.4 billion and $1.41 billion, compared with previous guidance of $1.55 billion. US dollars to US$1.56 billion. 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 CEO Rob Enslin would resign on June 1 and be replaced by co-founder Daniel Dines, who resigned as co-CEO in January. 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.