Daniel Denis, co-founder and CEO of UiPath, speaks to the audience during the third day of Web Summit 2021 at Parque das Nacoes in Lisbon.
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UI PathMicrosoft Corp., a developer of automation software, said it will cut 10% of its workforce, or about 420 jobs, as part of a broader restructuring, in a filing with the Securities and Exchange Commission on Tuesday.
The company said most of the layoffs will be implemented by the end of the first quarter of fiscal 2026. That quarter ends next April.
UiPath shares fell about 7% Tuesday to close at $11.93 and have now lost more than half their value this year. The Nasdaq has gained 23% during that time. UiPath has faced a significant slowdown in revenue growth following its 2021 initial public offering, which was one of the largest U.S. software offerings ever.
While UiPath reported better-than-expected earnings for its fiscal first quarter in May, the company lowered its full-year revenue forecast, saying it now expects between $1.4 billion and $1.41 billion, down from a previous forecast of $1.55 billion to $1.56 billion. Its current outlook equates to annual growth of about 7.5%, down from 24% a year earlier.
UiPath makes software that automates repetitive tasks. The company announced in May that CEO Rob Enslin would step down effective June 1, and would be succeeded by co-founder Daniel Dennis, who stepped down as co-CEO in January. The move sent the company’s shares down 30%.
UiPath said Tuesday it expects to incur costs of between $15 million and $20 million related to layoffs, and total restructuring costs of between $17 million and $25 million. The company previously announced two rounds of job cuts in 2022.
“These changes reflect efforts to reshape the organization by simplifying the company’s structure, particularly in operational and corporate functions, better prioritizing our investments in bringing products to market, and focusing our R&D investments on AI and driving innovation across our platform,” UiPath said in a statement Tuesday.
— CNBC's Rohan Goswami contributed to this report.
