Sponsored By

Latest DocuSign Layoffs Hit 400 Workers

This is the second round of layoffs under DocuSign's current CEO.

Edward Gately

February 6, 2024

3 Min Read
DocuSign layoffs

New DocuSign layoffs are impacting about 400 employees, or 6% of its workforce, as part of a restructuring plan.

Last February, DocuSign announced layoffs impacting 10% of its workforce, or about 700 employees. The company announced the latest layoffs in a U.S. Securities and Exchange Commission (SEC) filing and a blog by CEO Allan Thygesen.

"This is a painful decision, and it is not one I, the leadership team or the board make lightly,” he said. “Of course, I am most concerned for our colleagues who will be leaving, but I am also aware that layoffs are disruptive and hard on company culture, especially when they happen more than once. This is the second companywide action in my time at DocuSign. I am deeply sorry that we have to do this again.”

Reason Behind DocuSign Layoffs

Thygesen said he joined DocuSign in October of 2022 because he saw “an incredible opportunity: a beloved brand, an expansive customer base, and the chance to create a SaaS category that could usher in the next great business transformation. That opportunity has not changed — if anything it has become clearer.”

“I still believe we have a strong opportunity ahead of us as an independent, public company, but it will be a multiyear journey to realize our vision for the future of DocuSign and our growth aspirations,” he said. “We are making early progress, as evidenced by last month’s major beta releases, but it will take time for our new products to make a material impact on key metrics, including bookings, billings and revenue. This reality makes it critical for us to manage our business to improve profitability and focus investment on initiatives that provide the strongest foundation for long-term growth.” 

Related:DocuSign Cutting 700 Workers in Latest Layoffs Amid Restructuring

DocuSign's Allan Thygesen

Thygesen said that’s why he asked DocuSign’s executive leadership team to reduce operating costs for fiscal year 2025, starting with an emphasis on operating costs other than current employee headcount, including areas such as program spend, professional fees, non-critical open roles, and more. The company already is implementing those reductions.

“However, after evaluating where we are as a business, we concluded that further action was needed,” he said.

Most of the employees impacted by these latest DocuSign layoffs are in the company’s sales and marketing organizations.

DocuSign estimates it will incur about $28 million-$32 million in non-recurring charges in connection with the restructuring plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits and related costs, as well as non-cash expenses related to vesting of share-based awards.

“We have a very real opportunity to reinvigorate growth and create a category-defining company,” Thygesen said. “We can continue to improve our efficiency and execution as a business while still investing in the key initiatives that will drive our future growth.”

Read more about:


About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

Free Newsletters for the Channel
Register for Your Free Newsletter Now

You May Also Like