UiPath has announced it will lay off 10 percent of its workforce, roughly 420 employees, as part of a companywide restructuring.
The automation software developer disclosed this information in a filing with the SEC.
Most of these layoffs are expected to be completed by the end of the first quarter of fiscal 2026.
Following the announcement, UiPath’s shares fell by approximately seven percent, closing at $11.93.
The stock has lost more than half its value this year despite the Nasdaq gaining 23 percent over the same period.
Since its IPO in 2021, one of the largest US software offerings on record, UiPath has experienced a significant slowdown in revenue growth.
UiPath reported better-than-expected fiscal first-quarter earnings in May but lowered its revenue guidance for the full year.
“These changes reflect efforts to reshape the organization by streamlining the Company’s structure”
The company now projects revenue between $1.4 billion and $1.41 billion.
This is down from the previous estimate of $1.55 billion to $1.56 billion.
UiPath, which develops software to automate repetitive tasks, announced a leadership change in May.
CEO Rob Enslin has resigned, effective from June 1.
He was succeeded by co-founder Daniel Dines, who had stepped down as co-CEO in January.
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This leadership transition caused the stock to plummet by 30 percent.
Due to the layoffs, the company expects to incur costs between $15 million and $20 million.
The total restructuring expenses are projected to range from $17 million to $25 million.
UiPath had previously implemented two rounds of job cuts in 2022.
UiPath said: “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.”
