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In a Securities and Exchange Commission filing, software company UiPath (NYSE:PATH) said they have approved restructuring actions to manage operating expenses, which includes an overall reduction of approximately 5% of its global workforce of approximately 4,200.
Most of the layoffs are expected to occur by the end of its second fiscal quarter of 2023.
“This workforce reduction is aimed at simplifying our go-to-market approach starting with an alignment that we believe will result in better market segmentation, higher sales productivity, and best-in-class customer experience and outcomes,” the company said in the filing.
UiPath said it estimates it will incur approximately $15 million in restructuring expenses, mainly related to severance and compensation packages.
UiPath has joined the list of companies laying off staff, with several companies such as Netflix (NASDAQ:NFLX), Microsoft (NASDAQ:MSFT), and PayPal (NASDAQ:PYPL) rolling out layoffs and hiring freezes.
UiPath shares are trading 1% lower in early Monday trading, adding to its 50% year-to-date loss.
