DocuSign Inc. said Tuesday it will take up to $32 million in charges against its earnings as part of a cost-cutting move to reduce its work force by 6%, as job reductions continue in the technology sector.
fell 2% at the closing bell on Tuesday after it warned it will take restructuring charges of $28 million to $32 million for the move, mostly in first quarter of fiscal 2025.
The stock is down by 12.2% so far in 2024, compared to a 3.9% gain by the S&P 500
The company will share further financial details about the restructuring during its fourth-quarter fiscal 2024 results on March 8.
The cost-cutting move will affect about 400 people, according to a blog post by Chief Executive Allan Thygesen.
DocuSign said the majority of the job cuts are in its sales and marketing unit.
The job cuts will help “strengthen and support the company’s financial and operational efficiency,” the company said.
It’s the latest in a series of cost-cutting moves in the U.S. work force, particularly in the software business.
recently cut 1,900 jobs as part of layoffs in the video game industry. Unity Software Inc.
is reducing its work force by 25% or about 1,800 people.
Also read: Tech layoffs in the spotlight again as 2024 kicks off with Xerox job cuts