DocuSign to lay off 10% of its workforce, or about 700 employees

E-signature software program firm DocuSign on Thursday introduced plans to chop round 10% of its workforce.

DocuSign had 7,461 staff in January 2022 earlier than it introduced an earlier spherical of layoffs final September that impacted 9% of its workforce. The firm stated the newest cuts will affect about 700 staff.

DocuSign stated it’s reducing staff with a purpose to help the corporate’s development, scale and profitability goals. It will take an impairment cost of roughly $25 million to $35 million, primarily within the first quarter of fiscal 2024, because of the layoffs.

The restructuring plan will possible be full by the top of the second quarter, the corporate stated.

DocuSign joins a rising listing of tech corporations which have introduced layoffs as rising rates of interest and slowing shopper demand have triggered fears of a recession and spurred corporations to chop prices. Twilio on Monday stated it will reduce 17% of its workforce, or about 1,500 jobs, whereas Amazon, Meta, Google and Salesforce have introduced important job cuts in latest months.

“The restructuring mainly impacts our worldwide field organization,” a DocuSign spokesperson instructed CNBC. “This action allows us to reshape the company to more effectively position us for profitable growth, while freeing up resources for investments.”

DocuSign shares had been up about 3% in afternoon buying and selling on Thursday.