New York, July 10: UiPath, a US-based AI and business automation software company, announced reducing 10% of its workforce as it began implementing a broader restructuring. UiPath is a multinational software company known for robotic process automation software and offers artificial intelligence for real-world enterprises. UiPath layoffs will reportedly result in around 420 people to lose their jobs.
UiPath’s latest attempt to restructure its business has resulted in a reduction in employee numbers. The company had been struggling amid decrease in stock price and CEO’s departure from the company. In May 2024, UiPath CEO Robert Enslin announced his resignation effective from June 1, 2024, and later was succeeded by Daniel Dines, the company’s co-founder. It resulted in the company’s stock falling 30%. UKG Layoffs: US-Based Software Firm Announces Massive Layoff Round, Cuts Over 2,200 Jobs as Part of Organisational Changes To Focus on Growth Areas.
CBNC reported that the business automation software company said in an SEC filing that it would cut a 10% reduction in its workforce, leading to nearly 420 people losing their jobs. The UiPath layoffs will be implemented by the end of the first quarter of fiscal year 2026, which will end next April.
The UiPath job cuts resulted from the company’s facing price fall of around 7% on July 9, 2024, to close at USD 11.93. By far, the report highlighted that the company lost over half of their value this year, with Nasdaq up 23% over that stretch. It also mentioned that the software company witnessed a slowdown in revenue growth after one of the most significant IPO announcements in the United States in 2021. The company said it would expect between USD 1.4 billion and USD 1.41 billion compared to previous revenue guidance of USD 1.55 billion to USD 1.56 billion. Dyson Layoffs: British Appliance Maker To Lay Off Around 1,000 Employees in Britain; Check Details.
UiPath said that the layoffs would cost USD 15 million to USD 20 million, and total restructuring costs would be around USD 17 million and USD 25 million. Its current forecast would equal annual growth of about 7.5%, down from 24% the prior year. UiPath said that the new changes reflected its efforts to reshape the organisation by streamlining the structure of the company. The company also added that the decision of UiPath layoffs was aimed to facilitate operational and corporate functions to prioritise its ‘go-to-market’ investments. The AI business automation provider also said it would focus more on research and development investment in artificial intelligence and innovation.
(The above story first appeared on LatestLY on Jul 10, 2024 01:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
