DocuSign will lay off 10% of its staff or about 700 employees

DocuSign, a U.S. electronic signature software company, plans to lay off 10 percent of its staff or about 700 employees as part of a restructuring. DocuSign notified the U.S. Securities and Exchange Commission.

According to the company, the layoffs will allow DocuSign to grow and increase profitability.

According to the company's report, the layoffs will result in impairment losses of about $25 million to $35 million in the first quarter of fiscal 2024.

The restructuring will mostly affect DocuSign's global field organization, a company spokesman said. He added that DocuSign's restructuring will better position the business for profitable growth as well as free up resources for investment.

DocuSign clarified that the restructuring plan will likely be completed by the end of the second quarter.

In recent months, a number of technology companies have announced layoffs amid rising interest rates and slowing consumer demand. Firms fear a recession, so they are forced to cut costs.

Earlier, the U.S. software company Sprinklr cut 4% of its staff - more than 100 employees - as the economic downturn continued. Sprinklr began layoffs last week and continues to cut employees in India, the U.S. and other countries.

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