Daniel Dines, co-founder and CEO of UiPath, addressed the audience on the third day of Web Summit 2021, held at Parque das Nacoes in Lisbon.
Bruno de Carvalho | SOPA Images | Light Rocket Getty Images
UI PassThe automation software developer is cutting 10% of its workforce, or about 420 jobs, as part of a broader restructuring, it announced in a filing with the Federal Housing Finance Corporation. SEC on tuesday.
The company said most of the job cuts will take place by the end of the first quarter of fiscal 2026, which ends in April next year.
UiPath shares fell about 7% on Tuesday to close at $11.93, losing more than half their value so far this year, while the Nasdaq has risen 23%. UiPath has seen revenue growth slow dramatically since its 2021 IPO, which was one of the largest software listings in U.S. history.
UiPath reported better-than-expected first-quarter profits in May but lowered its full-year revenue guidance, saying it now sees revenue of between $1.56 billion and $1.41 billion, down from a previous forecast of $1.55 billion. It now expects annual growth of about 7.5%, down from 24% a year ago.
UiPath makes software to automate repetitive tasks. The company announced in May that CEO Rob Ensslin would step down on June 1 and be replaced by co-founder Daniel Dines, who stepped down as co-CEO in January. The move caused the company’s shares to fall 30%.
UiPath said on Tuesday it expects to incur between $15 million and $20 million in costs related to job cuts and $17 million to $25 million in total restructuring costs. The company had previously announced two rounds of job cuts in 2022.
“These changes reflect our efforts to realign our organization by streamlining the company’s structure, particularly across operational and enterprise functions, to better prioritize go-to-market investments, focus R&D investments on artificial intelligence, and drive innovation across our platform,” UiPath said in a statement on Tuesday.
—CNBC’s Rohan Goswami contributed to this report.