Company to chop 10% of workforce

UiPath, a developer of automation software, is cutting 10% of its workforce, or about 420 jobs, as a part of a broader restructuring, the corporate said in filing with the SEC on Tuesday.

A lot of the layoffs will likely be implemented by the tip of the primary quarter of fiscal 2026, the corporate said. That quarter ends next April.

UiPath shares dropped about 7% on Tuesday and have now lost greater than half their value this 12 months. The Nasdaq is up 23% over that stretch. UiPath has faced a dramatic slowing of revenue growth following its IPO in 2021, which was one in all the largest U.S. software offerings on record.

While UiPath reported better-than-expected fiscal first-quarter earnings in May, the corporate lowered its revenue guidance for the complete 12 months, and said it now expects between $1.4 billion and $1.41 billion compared with previous guidance of $1.55 billion to $1.56 billion. Its current forecast would equal annual growth of about 7.5%, down from 24% the prior 12 months.

UiPath makes software that automates repetitive tasks. The corporate announced in May that CEO Rob Enslin was resigning effective June 1, and can be succeeded by co-founder Daniel Dines, who had stepped down as co-CEO in January. That move drove the stock down 30%.

UiPath said Tuesday that it expects to incur $15 million to $20 million in costs related to the layoffs, and total restructuring costs between $17 million and $25 million. The corporate previously announced two rounds of job cuts in 2022.

“These changes reflect efforts to reshape the organization by streamlining the Company’s structure, particularly in operational and company functions, higher prioritizing our go-to-market investments and focusing our research and development investments on artificial intelligence and driving innovation across our platform,” UiPath said in Tuesday’s statement.

— CNBC’s Rohan Goswami contributed to this report.