UiPath (NYSE: PATH) is reducing its overall workforce by 5% amid its new restructuring plan, according to an SEC filing. The majority of the layoffs are expected to take place at 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.
The global software company revealed that it will incur approximately USD15 Million in restructuring expenses, mostly due to severance and compensation packages. Similarly, big name companies such as Netflix, Microsoft and Paypal have also introduced layoffs and firing freezes.
According to a UiPath spokesperson, the company’s layoffs are not related to market conditions.
“In the context of ongoing business prioritization, UiPath is undertaking a restructuring action that will primarily focus on the effectiveness of our go-to-market organization,” the spokesperson said, noting that the company believes the cuts will help it simplify its go-to-market approach and lead to higher sales productivity and better market segmentation.
UiPath’s stock has plummeted 50% throughout the year and has a current market cap of USD11.76 Billion.