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UiPath, the automation software developer, is set to reduce its workforce by 10%, equivalent to around 420 jobs, as part of a broader restructuring initiative. The company disclosed this information in a filing with the SEC on Tuesday.
Most of these layoffs will be implemented by the end of the first quarter of fiscal 2026, which concludes next April.
On Tuesday, UiPath shares dropped approximately 7%, closing at $11.93, and have now lost over half their value this year, despite the Nasdaq’s 23% gain over the same period. The company has been grappling with a significant slowdown in revenue growth since its IPO in 2021, which was one of the largest U.S. software offerings on record.
In May, UiPath reported better-than-expected fiscal first-quarter earnings but revised its full-year revenue guidance downward. The company now anticipates revenue between $1.4 billion and $1.41 billion, down from the previous forecast of $1.55 billion to $1.56 billion. This new guidance indicates an annual growth of about 7.5%, a stark decline from the 24% growth in the prior year.
UiPath’s software automates repetitive tasks. In May, the company announced the resignation of CEO Rob Enslin, effective June 1, and the succession by co-founder Daniel Dines, who had stepped down as co-CEO in January. This leadership change caused the stock to plummet by 30%.
On Tuesday, UiPath stated it expects to incur $15 million to $20 million in costs related to the layoffs and total restructuring costs between $17 million and $25 million. The company had previously announced two rounds of job cuts in 2022.
“These changes reflect efforts to reshape the organization by streamlining the Company’s structure, particularly in operational and corporate functions, better prioritizing our go-to-market investments and focusing our research and development investments on artificial intelligence and driving innovation across our platform,” UiPath said in Tuesday’s statement.