UiPath to cut 10% of workforce in corporate-wide overhaul

UiPath, a prominent developer of automation software, has disclosed plans to reduce its workforce by 10%, equating to approximately 420 jobs, as part of a broader restructuring initiative. The company aims to execute most of these layoffs by the conclusion of the first quarter of fiscal 2026, which ends in April next year. This decision follows a significant decline in UiPath's stock value, with shares plummeting by 7% on Tuesday and experiencing a total loss exceeding 50% for the year. In contrast, the Nasdaq index has surged by 23% during the same period. The company's revenue growth has notably decelerated since its IPO in 2021, despite surpassing expectations in its fiscal first-quarter earnings report released in May. UiPath revised its revenue forecast for the year downwards, now anticipating a range between $1.4 billion and $1.41 billion, compared to the initial projection of $1.55 billion to $1.56 billion. This adjustment signifies a substantial decrease in annual growth from 24% to approximately 7.5%. Specializing in software that automates repetitive tasks, UiPath encountered additional turbulence when CEO Rob Enslin resigned in May, leading to a 30% drop in the company's stock value. UiPath foresees incurring costs ranging from $15 million to $20 million related to the layoffs, with total restructuring expenses estimated between $17 million and $25 million. The company had previously announced two rounds of job cuts in 2022. In a statement released on Tuesday, UiPath clarified that these organizational changes are part of an effort to streamline its structure, particularly in operational and corporate functions, enhance focus on go-to-market investments, and concentrate research and development efforts on artificial intelligence to foster innovation across its platform. The company's co-founder, Daniel Dines, assumed the role of CEO following Enslin's departure earlier this year.