DocuSign, the San Francisco-based electronic signature company, is laying off roughly 6% of its workforce — its third round in the last two years.
As part of a plan to reduce operating costs across the company for the 2025 fiscal year, DocuSign chief executive Allan Thygesen and other members of the executive leadership team cut back on program spending, professional fees, non-critical open roles and more.
"We are making early progress, as evidenced by last month's major beta releases, but it will take time for our new products to make a material impact on key metrics including bookings, billings and revenue. … This reality makes it critical for us to manage our business to improve profitability and focus investment on initiatives that provide the strongest foundation for long-term growth," Thygesen said in a
He stated that the non-staff reductions weren't enough, requiring further cuts that affect 400 employees mostly in the organization's sales and marketing divisions. The employee layoffs and other changes will cost roughly $28 to $32 million in "non-recurring" charges consisting of "cash expenditures for employee transition, notice period and severance payments, employee benefits and related costs as well as non-cash expenses related to vesting of share-based awards," according to a
"Of course, I am most concerned for our colleagues who will be leaving, but I am also aware that layoffs are disruptive and hard on company culture, especially when they happen more than once," Thygesen said.
In September 2022, DocuSign leadership
Share prices peaked at $64.70 in early January, according to
Data from Cornerstone Advisors' annual "
"Financial institutions aren't simply partnering with fintechs, they're investing in them. … Banks and credit unions have become the new venture capitalists," Ron Shevlin, chief research officer for Cornerstone, said in the report.
The majority of the charges generated as a result of DocuSign's restructuring are expected to occur in the first quarter of 2025 fiscal year, with changes to be finalized before the end of the following quarter.