DocuSign will lay off 9% of its workforce as part of a major restructuring plan, the company announced Wednesday.
The plan is designed to support the company’s growth and profitability objectives and improve its operating margin. As of January, DocuSign had 7,461 employees, and it said the restructuring plan will largely be complete by the end of fiscal year 2023.
Shares of DocuSign were up 5% as of 10:35 a.m. ET.
It expects to incur charges between $30 million and $40 million, largely in the third and fourth quarter of fiscal 2023, as part of the changes.
The electronic signature software maker enjoyed a wave of greater interest among investors during the Covid pandemic as consumers and corporate workers became more reliant on digital ways to sign documents. But the interest has died down, and shares have fallen 65% so far this year.
Several firms downgraded the company’s stock in June after first-quarter earnings fell short of analyst estimates. Dan Springer, the former CEO, stepped down later that month. DocuSign announced earlier this month that it hired an Alphabet executive, Allan Thygesen, as its next CEO.