DocuSign Inc (NASDAQ:DOCU) shares are trading lower Tuesday after the company announced a restructuring plan that includes a 6% workforce reduction.
What Happened: DocuSign has announced a new restructuring plan designed to strengthen its financial and operational efficiency while continuing to invest in product and related initiatives.
As part of the plan, DocuSign said it expects to cut its workforce by approximately 6%. The company estimates that it will incur approximately $28 million to $32 million in restructuring charges, mainly consisting of cash expenditures for the employee transition.
A majority of the restructuring charges are expected to be incurred in the first quarter of fiscal 2025. The restructuring plan is expected to be substantially completed by the end of the second quarter of fiscal 2025.
DocuSign also announced that it expects to meet or exceed its fourth-quarter and full-year guidance that was provided in December. The company said it will share further details about the restructuring when it releases its fourth-quarter results.
DocuSign is expected to report fourth-quarter financial results sometime in early March, although a date has not yet been confirmed by the company. According to estimates from Benzinga Pro, the company is expected to report earnings of 64 cents per share and revenue of $699.181 million.
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DOCU Price Action: DocuSign shares were down 6.22% at $49.90 at the time of publication, according to Benzinga Pro.
Photo: 3844328 from Pixabay.
