UiPath IPO on the New York Stock Exchange.
Source: NYSE
UiPath Will reduce about 5% of its total workforce as part of the restructuring plan For a New SEC Filing,
The company, a software provider for automating office tasks, said it had 4,200 employees as of April 30, 2022. Most of the layoffs are expected by the end of July.
The filing said that UiPath’s board has approved the decision to reduce the workforce, citing the need to increase profits.
The company estimates it will spend $15 million as part of the plan, primarily to pay for employee severance and compensation benefits.
A spokesperson told CNBC that UiPath’s layoffs are not related to market conditions.
“In the context of ongoing business prioritization, UiPath is taking a restructuring action that will primarily focus on the effectiveness of our go-to-market organization,” the spokesperson said. Approach to the market and lead to higher sales productivity and better market segmentation.
UiPath shares were flat around 11 a.m. Monday and are down 49% year-over-year. But, shares are up about 23% for the month following the company’s fiscal year report. Q1 earnings as on June 1 Which exceeded prior guidance and raised the outlook for Q2.
“It is about continuing to drive sustained, profitable growth. We would like to thank our team members—we appreciate their incredible talent and contribution in supporting UiPath and our mission,” said the spokesperson.
The software provider has over 45 offices in the US, Europe and Asia.
“The announcement indicates that PATH is focusing on profitability amid increasing investor scrutiny on tech stocks with limited profitability and FCFs.” Cowen analysts said in a note to investors on Monday. “This reflects our commitment to its long-term 20% adj EBIT target and this news reflects the first major changes made since the recent senior management appointments (new co-CEO and chief business officer).”