DocuSign to cut 9% of workforce to support growth and profitability objectives

CLOUD

Electronic signature and agreement cloud company DocuSign Inc. today announced it’s laying off about 9% of its workforce to support its growth and profitability objectives and to improve its operating margin.

CNBC reported that as of January, DocuSign had 7,651 employees. The cuts are expected to be completed by the end of the company’s fiscal year 2023 next March 31. Investors liked the news. DocuSign’s share price rose more than 5% today.

The layoffs come nearly a week after DocuSign’s board announced that Allan Thygesen was the company’s new chief executive officer. Thygesen previously held the role of president of Americas and Global Partners at Google LLC, where he led Google’s $100 billion advertising business in North and South America. Previously, Thygesen was president of Google Marketing Solutions.

According to a filing with the U.S. Securities and Exchange Commission, DocuSign’s restructuring is expected to incur charges of between $30 million and $40 million in the third and fourth quarters of fiscal 2023 from employee transactions, severance payments and benefits. Despite enjoying strong results through the COVID-19 pandemic, shares in DocuSign had dropped 65% this year as the pandemic passed and interest in its services died down.

The news that DocuSign is laying off staff comes a day after Lyft Inc. was reported to be freezing hiring amid uncertain economic conditions and rising inflation, after cutting 60 jobs in its rental division in July.

The decisions by DocuSign to lay off staff and Lyft to pause hiring come amid hiring freezes and layoffs in the broader tech sector. Companies that have previously restricted or frozen hiring include Uber Technologes Inc. in May, Google LLC and Microsoft Corp. in July and Apple Inc. on Aug. 16. Companies that have announced layoffs include Twilio Inc. cutting 11% of its workforce on Sept. 14 and Robinhood Markets Inc. announcing the layoffs of 23% of its staff on Aug. 2. Oracle Corp. was also reported on Aug. 1 to be laying off staff.

A Crunchbase report on Sept. 23 estimated that 42,000 workers in the U.S. tech sector had been laid off in mass job cuts so far in 2022.

Photo: DocuSign