DocuSign to Cut 9% of Workforce

Electronic signature and agreement cloud company DocuSign Inc. today 

announced it’s laying off about 9% of its workforce to support its growth 

and profitability objectives and to improve its operating margin. CNBC 

reported that as of January, DocuSign had 7,651 employees. The cuts 

are expected to be completed by the end of the company’s fiscal year 

2023 next March 31. Investors liked the news. DocuSign’s share price rose

 more than 5% today. The layoffs come nearly a week after DocuSign’s 

board announced that Allan Thygesen was the company’s new chief 

executive officer. Thygesen previously held the role of president of Americas

 and Global Partners at Google LLC, where he led Google’s $100 billion 

advertising business in North and South America. Previously, Thygesen 

was president of Google Marketing Solutions. According to a filing with the

U.S. Securities and Exchange Commission, DocuSign’s restructuring is 

expected to incur charges of between $30 million and $40 million in the third

and fourth quarters of fiscal 2023 from employee transactions, severance 

payments and benefits. Despite enjoying strong results through the COVID-19 

pandemic, shares in DocuSign had dropped 65% this year as the pandemic 

passed and interest in its services died down. The news that DocuSign is 

laying off staff comes a day after Lyft Inc. was reported to be freezing hiring

amid uncertain economic conditions and rising inflation, after cutting 60 jobs

in its rental division in July. The decisions by DocuSign to lay off staff and Lyft 

to pause hiring come amid hiring freezes and layoffs in the broader tech sector. 

to pause hiring come amid hiring freezes and layoffs in the broader tech sector.