Automation software firm UiPath said in a filing with the SEC on Tuesday that, as part of a larger reorganization, it is eliminating 10% of its staff, or around 420 positions.
According to the corporation, the majority of the layoffs will take place by the end of the first quarter of fiscal 2026. The quarter concludes in April of next year.
Tuesday’s 7% decline in Ui share price means that it has already lost almost half of its worth this year.
Over that time, the Nasdaq has increased by 23%. After its IPO in 2021—which was one of the biggest U.S. software offerings ever—UiPaths had a sharp slowdown in revenue growth.
Although Ui fiscal first-quarter results were stronger than anticipated, the firm revised down its full-year revenue projection, stating that it now anticipates between $1.4 billion and $1.41 billion as opposed to its prior guidance of $1.55 billion to $1.56 billion. As of right now, its projected yearly increase would be around 7.5%, compared to 24% the year before.
Software for automating repetitive processes is produced by Ui. The business said in May that co-founder Daniel Dines, who had resigned as co-CEO in January, would take over as CEO after Rob Enslin, who was leaving effective June 1. The stock fell thirty percent as a result.
On Tuesday, Ui said that it anticipated spending $15 million to $20 million on layoff-related expenses and $17 million to $25 million on restructuring charges overall. The business has already said that it will slash jobs in two phases in 2022.
“The Company’s structure has been streamlined, especially in operational and corporate functions.
