The stock of UiPath (PATH) is down 7% after the software developer announced plans to cut 10% of its workforce, or about 420 jobs, as part of a broad restructuring.
The layoffs will be completed by April 2025, the company said in a filing with the U.S. Securities and Exchange Commission (SEC).
The restructuring comes as UiPath struggles with decelerating revenue growth following its initial public offering (IPO) in 2021.
While UiPath reported better-than-expected fiscal first-quarter financial results in May of this year, the company lowered its revenue guidance for the full year.
UiPath said it expects sales of $1.41 billion U.S. compared with previous guidance of $1.56 billion U.S.
The revised guidance represents annual growth of 7.5%, down from 24% growth the previous year.
In May, UiPath announced that chief executive officer (CEO) Rob Enslin was stepping down and would be replaced by company co-founder Daniel Dines.
UiPath expects to incur $15 million U.S. to $20 million U.S. in costs related to the 10% workforce reduction, and total restructuring costs of $17 million U.S. to $25 million U.S.
The stock of UiPath is down 50% on the year and trading at $11.93 U.S. per share. Since its IPO in 2021, the stock has declined 84%.
