DOCU - Why DocuSign's Layoffs Are Bad News for the Stock
2024-02-06 15:28:24 ET
Shares of DocuSign (NASDAQ: DOCU) fell as much as 7.4% in trading on Tuesday after the company announced a restructuring and layoffs. As of 2:45 p.m. ET shares are down 3%.
DocuSign announced a restructuring plan "designed to strengthen and support the Company's financial and operational efficiency" while also delivering growth. The plan includes eliminating about 6% of the workforce, or about 440 jobs. Most of the cuts are expected to be in sales and marketing.
As part of the release, management said it will "meet or exceed" fourth-quarter and fiscal 2024 guidance provided in December. That included revenue of $696 million to $700 million for the quarter and non-GAAP (adjusted) operating margin of 22.5% to 23.5%.
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Why DocuSign's Layoffs Are Bad News for the Stock