DocuSign to cut 6% of its workforce as sales talks stall

(Bloomberg) — DocuSign Inc. is cutting about 6% of its workforce as part of a restructuring effort after talks to sell itself stalled.

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The company said in a statement on Tuesday that the move will affect mostly sales and marketing employees. DocuSign had 7,336 employees at the end of 2023. As a result of the layoffs, the company will incur approximately $28 million to $32 million in restructuring charges. The stock slipped 7.4% in premarket trading in New York.

San Francisco-based DocuSign was a pandemic darling, but has been hurt by increasing competition from Adobe Inc.’s document business, and its valuation has suffered as investors lost their taste for unprofitable software stocks.

The company was in talks with Bain Capital and Hellman & Friedman to acquire it, but those discussions appear to have fallen through. DocuSign has not been able to agree on a deal price with any of the private equity firms that were competing to buy DocuSign, Reuters reported, citing people familiar with the matter.

Bloomberg has reported that several Wall Street banks, including JPMorgan Chase & Co. and Bank of America Corp., have been in talks to provide up to $8 billion in financing for the purchase of DocuSign.

The statement said the restructuring plan is designed to strengthen DocuSign’s financial and operational efficiency as it evolves into an independent public company. DocuSign said it expects to meet or exceed its fourth-quarter and fiscal 2024 guidance.

News from the online signature service company joins almost daily job cut announcements by technology companies. According to Layoffs.fyi, a startup that tracks job cuts in the industry, nearly 32,000 tech workers have lost their jobs so far this year…

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