DocuSign (NASDAQ:DOCU) announced Tuesday it will cut 6% of its workforce as part of a restructuring plan that aims to improve the company’s “financial and operational efficiency,” according to a release.
The company said the majority of the employees impacted by the layoffs will be within its sales and marketing organizations. DocuSign employs 7,336 workers according to its most recent filing with the U.S. Securities and Exchange Commission, which means the cuts will affect around 440 jobs.
Shares of DocuSign dived $3.58, or 6.7%, to to $49.63, soon after the opening bell Tuesday.
DocuSign said the restructuring plan will be largely complete by the end of its second fiscal quarter of 2025, according to the release. The company added that it expects to “meet or exceed” its fourth-quarter and fiscal year 2024 guidance that it outlined in a release in December.
The company said it will share more details about the restructuring when its fourth-quarter results are released.
DocuSign, according to company literature, “redefines how the world comes together and agrees, making agreements smarter, easier and more trusted. As part of its industry leading product lineup, DocuSign offers eSignature, the world’s #1 way to sign electronically on practically any device, from almost anywhere, at any time.
“Today, over one million customers and more than a billion users in over 180 countries use DocuSign products and solutions to accelerate the process of doing business and simplify people’s lives.”