DocuSign, a leading electronic signature provider, has announced a layoff of approximately 10% of its workforce, or about 700 employees, as part of its ongoing efforts to support growth, scale, and profitability objectives. This latest round of job cuts is set to be completed by July 31, following an earlier workforce reduction in September. DocuSign expects to incur a charge of between $25 million and $35 million in connection with the latest job cuts.
The San Francisco-based company operates one of the world’s most widely used electronic signature services, with over 1.3 million paying customers, including 19 of the 20 largest technology companies on the Fortune 500 list. DocuSign’s platform is relied on by more than 1 billion users to process contracts, making it a key player in the digital signature market.
To support revenue growth, DocuSign has in recent years expanded beyond the electronic signature market to adjacent segments, acquiring multiple startups and launching several new products. The company’s Agreement Cloud, a cloud platform that allows companies to store agreement templates and prepackaged contractual clauses, has been well received by customers. The platform also offers a number of automation features, enabling users to add business data from internal company applications to contracts and create workflows that collect signatures without manual input.
Despite experiencing rapid growth in the years following its 2018 initial public offering, DocuSign’s growth has slowed in recent quarters, with revenues growing 18% year-over-year in its most recent earnings report. The company faces competition from multiple players in its core electronic signature market, including Adobe Systems Inc., Box Inc., and a number of smaller companies. However, DocuSign remains optimistic about its growth potential, with the company projecting revenues of about $2.49 billion for its full 2023 fiscal year.
