DocuSign, a provider of e-signature software, made the announcement on Thursday that it would be cutting around 10% of its workforce.
Before it announced an earlier round of layoffs in September that impacted 9% of its workforce, DocuSign had 7,461 employees in January 2022. According to the company, approximately 700 employees will be affected by the most recent reductions.
DocuSign stated that it is cutting jobs to support the company’s goals of growth, scale, and profitability. As a result of the layoffs, it will incur an impairment charge of approximately $25 million to $35 million, mostly in the first quarter of fiscal 2024.
According to the company, the plan for restructuring will probably be finished by the end of the second quarter.
DocuSign joins a growing number of tech companies that have announced layoffs as rising interest rates and sluggish consumer demand have stoked concerns of a recession and prompted businesses to reduce expenses. Twilio announced on Monday that it would eliminate approximately 1,500 jobs, or 17% of its workforce, in contrast to the significant layoffs that Amazon, Meta, Google, and Salesforce have made in recent months.
A spokesperson for DocuSign stated, “The restructuring mainly impacts our worldwide field organization. This action allows us to reshape the company to more effectively position us for profitable growth, while freeing up resources for investments.”
In Thursday afternoon trading, shares of DocuSign were up about 3%.