UiPath to cut 5% of its workforce as part of restructuring plan

▤ Summary

UiPaths board approved the decision to reduce headcount, citing the need to increase profits by restructuring its market organization, the filing said. The company estimates that it will spend $15 million on restructuring expenses, mainly to pay for employee severance and compensation benefits. "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. But, shares are up about 23% for the month after the company reported fiscal Q1 earnings on June 1 that exceeded prior guidance and raised the outlook for Q2. "It had signaled its commitment to its longer-term 20% adj EBIT target and this news reflects the first major changes put into place post its recent senior management appointments (new Co-CEO and Chief Business Officer)."

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UiPath

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