DocuSign to reduce workforce by 6% in restructuring plan
DocuSign (DOCU) shares slide as the company announces a restructuring plan, which includes reducing its workforce by about 6%. In addition, the company forecasts incurring around $28-32 million in non-recurring restructuring changes involved with the plan. DocuSign is the latest company to announce layoffs in 2024.
Yahoo Finance Anchors Brad Smith and Seana Smith break down the latest developments for the e-signature company.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
BRAD SMITH: Shares of DocuSign extending losses this morning after announcing a restructuring plan, cutting its workforce by 6%. This comes amid a Reuters report that deal talks have stalled between DocuSign and private equity firms Bain Capital and Hellman & Friedman.
Taking a look at shares right now, they're down by about 6.5% in reaction here. As part of the company's restructuring plan, they say they're expecting that it's going to reduce the workforce by 6% as we mentioned, also estimating that they're going to incur approximately $28 to $32 million in non-recurring restructuring charges in connection with this plan as well.
SEANA SMITH: Yeah, Brad, I think there's lots of questions just about what exactly the future looks like here for DocuSign. Because remember, this was a pandemic darling. At one point, shares were up over 300 bucks a share. Here we are today, sitting just below 50 bucks a share.
And like you were just talking about, there has been talk-- has been discussions about potentially being taken private, getting acquired here by some PE firms when it comes to Bain, along with Hellman & Friedman. But at least according to Reuters, those talks have now fallen through. They could not agree on a price.
So lots of questions just about what DocuSign is going to look like here as a company going forward. They're being forced to make cuts, laying off a certain percentage, approximately 6% of their workforce. And you could see, even in pre-market reaction this morning, not enough really to offset some of the concerns about the future of the business, with shares still down about 6%.
