By Emily Bary
Shares of the electronic-signature company have lost nearly two-thirds of their value this year
DocuSign Inc. plans to lay off 9% of its workforce as it embarks on a restructuring plan, the electronic-signature company disclosed Wednesday.
DocuSign (DOCU) expects the restructuring plan to "improve operating margin and support the company's growth, scale and profitability objectives," it said in a filing with the Securities and Exchange Commission Wednesday morning. The plan was approved by the company's board of directors on Monday, according to the filing.
Shares of DocuSign were up 2% in premarket trading Wednesday.
The company had 7,461 employees as of Jan. 31, 2022, according to its most recent 10-K, an annual report required by the SEC. About two-thirds of those employees were in sales, marketing or customer-success roles, and just over two-thirds of all employees were based in the U.S.
DocuSign executives expect to incur $30 million to $40 million in charges related to the restructuring efforts, mainly representing cash expenditures for employee severance payments and related costs. The management team anticipates that it will record the bulk of those charges in the company's fiscal third and fourth quarters and that the plan will be "substantially complete" by the end of the fiscal year.
Shares of DocuSign have struggled this year, falling 65% thus far over the course of 2022 amid broader pressure on fast-growing software names as well as some internal execution issues, although the company cleared Wall Street's bar most recently.
The company recently named Allan Thygesen, an Alphabet Inc. (GOOGL) veteran, to serve as DocuSign's chief executive.
See more: DocuSign hires Google vet as CEO
(END) Dow Jones Newswires
09-28-22 0930ETCopyright (c) 2022 Dow Jones & Company, Inc.