Electronic signature and agreement cloud company DocuSign Inc. has announced that it is laying off approximately 9% of its workforce to support its growth and profitability objectives and to improve its operating margin.

CNBC reports that as of January, DocuSign had 7651 employees, with the restricting plan expected to be completed by the end of the company’s fiscal year 2023 – March 31 next year. Investors liked the news, with DocuSign’s share price closing regular trading up 5.09%.

The layoffs come nearly a week after DocuSign’s Board of Directors announced that Allan Thygesen was the company’s new chief executive officer. Thygesen previously held the role of president, Americas and Global Partners at Google LLC, where he led Google’s $100 billion advertising business in North and South America. Previously, Thygesen held the position of president of Google Marketing Solutions.

According to a filing with the U.S. Securities and Exchange Commission, DocuSign’s restructuring is expected to incur charges of between $30 million and $40 million in the third and fourth quarters of fiscal 2023 due to employee transactions, severance payments and employee benefits. Despite enjoying strong results through the COVID-19 pandemic, shares in DocuSign had dropped 65% this year as the pandemic passed and interest in its services died down.

The news that DocuSign is laying off staff comes a day after Lyft Inc. was reported to be freezing hiring amid uncertain economic conditions and rising inflation, after cutting 60 jobs in its rental division in July.

The decisions by DocuSign to lay off staff and Lyft to pause hiring come amid hiring freezes and layoffs in the broader tech sector. Companies that have previously restricted or frozen hiring include Uber Technologes Inc. in May, Google LLC and Microsoft Corp. in July and Apple Inc. on Aug. 16. Companies that have announced layoffs include Twilio Inc. cutting 11% of its workforce on Sept. 14 and Robinhood Markets Inc. announcing the layoffs of 23% of its staff on Aug. 2. Oracle Corp. was also reported to be laying off staff on Aug. 1.

A Crunchbase report on Sept. 23 estimated that 42,000 workers in the U.S. tech sector had been laid off in mass job cuts so far in 2022.

Photo: DocuSign

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