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DocuSignhas let out that it ’s laying off 6 % of its workforce , impacting some 400 employees .
In anSEC filing , the e - signature software company said that the “ restructuring design ” will mainly touch on those in its sales and marketing team , and is probable to cost DocuSign between $ 28 and $ 32 million in terms of falling out payouts , welfare and other associated costs .
The promulgation add up amid rise rumors that DocuSign was thetarget of a $ 13 billion takeover bid , with individual equity firms Bain Capital and Hellman & Friedman reportedly jostle for the deal . However , Reuters reported yesterdaythat their interest had cooled after failing to accomplish an arrangement on the fee , though the outlook of negotiation resuming remains a possibility .
As with many companies during the pandemic , DocuSign ’s hazard soared due to the rush toward remote everything , hitting a market ceiling of more than $ 60 billion in 2021 . Butreality bitas the world transitioned back to something cheeseparing to normality , with DocuSign ’s valuation youngster nearer to its pre - pandemic storey at around the $ 10 billion print .
Round two
DocuSign is the latestin a line of tech companiesto undergo more than one turn of layoffs in the pursuit of cost - newspaper clipping . Indeed , the company lay off9 % of its workforcein belated 2022 followed by afurther 10 % just month later , though it transpired these were part of the same round of layoffs .
DocuSign pronounce that round two of its layoff is plan to “ fortify and support its fiscal and operational efficiency , ” and that it expects to “ come across or exceed ” its fiscal guidance at its Q4 2023 earnings next month . In anemail sent to employee today , DocuSign CEO Allan Thygesen said that they had to tighten operating costs because it will “ take time ” for its belated product releases and update , which includesa new WhatsApp consolidation , to make any meaningful impact on its revenues — and that they had explored other toll - cut avenues .
“ I ask the Executive Leadership Team to abbreviate operating costs for FY25 , bug out with an emphasis on operating cost other than current employee head count , including areas such as program spend , professional fees , non - critical overt role , and more . These reductions are already being implemented , ” Thygesen write . “ However , after evaluating where we are as a business concern , we conclude that further action was need . ”
