UiPath announces 10% headcount reduction to cut costs

UiPath, a provider of artificial intelligence (AI)-powered business automation technology, announced Tuesday (July 9) that it will lay off 10% of its global workforce as part of a restructuring aimed at managing operating expenses.

The company employed about 4,200 people worldwide as of July 1, UiPath said in a filing Tuesday with the Securities and Exchange Commission (SEC) that disclosed the layoffs.

“This reduction in headcount is intended to increase operational efficiency and increase customer focus,” the company said in the filing. “These changes reflect efforts to reshape the organization by streamlining the company’s structure, particularly across operational and corporate functions, better prioritizing our go-to-market investments, and focusing our research and development investments on artificial intelligence and driving innovation across our platform.”

UiPath shares have lost more than half their value this year, at a time when the Nasdaq is up 23%, CNBC reported Tuesday.

Since its 2021 IPO, one of the largest software offerings ever in the U.S., the company has seen its revenue growth slow, the report said.

UiPath reported better-than-expected quarterly results in May but lowered its full-year forecast, according to the report. The company now expects annual growth of about 7.5%, down from 24% a year earlier, the report said.

The company said in a May 29 press release that Rob Enslin is stepping down as CEO and board member effective June 1, and that UiPath founder and former CEO Daniel Dines will be reappointed as CEO on that date.

“I thank Rob for his contributions to UiPath over the past two years, during which he has played a significant role in the growth of the company,” Dines said in the statement. “With this change, I am excited to return to the CEO role and look forward to leading the company into our next phase of profitable growth and innovation.”

At the time of its 2021 IPO, which valued the company at $36 billion, it was reported that UiPath’s digital transformation technology was initially applied to back-office tasks, but it was later adding front-office areas for its robots.