On Thursday, DocuSign, an e-signature company, became the next company to lay off its employees this year. The company has decided to lay off around 10% of its working staff.
Earlier in January 2022, the company had around 7,461 workers. In the first round of layoffs, the company terminated about 9% of its workforce in September last year.
For this new year, the company will cut around 10% of its workforce, which equals about 700 employees, which will be affected.
Tiffany Hagler-Geard | Bloomberg | Getty Images
Why is DocuSign laying off its employees?
The foremost reason behind this layoff, as mentioned by the company, is to strengthen the company’s growth and scale and raise profits for the company.
As a result of this layoff, the company aims to create a profit from $25 million to $35 million in the first quarter of 2024.
According to the company, the structured plan to create profit and growth will likely be completed towards the end of the second quarter or the start of a new quarter.
DocuSign has joined the increasing wave of tech firms that have disclosed that they will cut off staff. This follows as increasing interest rates and a downturn in consumer spending have raised concerns of a collapse and driven firms to reduce expenses.
Twilio said on Monday that it would be eliminating a 17percent of its personnel, which is comparable to approximately 1,500 positions. In recent months, Amazon, Meta, Google, and Salesforce have also reported substantial employment reductions.
“The restructuring mainly impacts our worldwide field organisation,” a DocuSign spokesperson told CNBC.
“This action allows us to reshape the company to more effectively position us for profitable growth while freeing up resources for investments.”
Last week, Zoom Video Communications Company revealed that it would be firing off 1,300 people, which is similar to 15 per cent of its entire workers and decreasing the pay of Chief Executive Eric Yuan.
During trading on Thursday afternoon, the price of DocuSign stocks increased by approximately 3 per cent.
According to a statement with the regulatory agencies, the firm’s September reorganisation was planned to be primarily completed by the end of the fiscal year 2023, which coincides with the end of this month.
About DocuSign:
DocuSign, Inc. is a firm based in the United States, with its headquarters in San Francisco, California. The firm provides a way for companies to handle electronic contracts. DocuSign offers eSignature as an element of the DocuSign Agreement Cloud.
This lets people digitally sign papers using a wide range of devices. It was founded by Tom Gonser, Court Lorenzini, and Eric Ranft. The present position of CEO is Allan C. Thygesen. A total of 7,461 employees are working in the company as of 2022.
