San Francisco-based DocuSign announced its second round of layoffs within six months, cutting 10% of its global workforce. Filed publicly on Thursday, the restructuring plan is expected to cost the company up to $35 million in severance and benefits. The cuts will primarily target employees in the company’s worldwide field organization. DocuSign joins fellow San Francisco tech firms Twilio and Unity in conducting multiple layoff rounds in 2023, reflecting broader industry struggles with economic pressures, declining stock values, and pandemic-era overhiring.
In-Depth:
DocuSign, the San Francisco company whose core product is updating form-filling for the internet age, has conducted its second round of layoffs in a six-month span — proving that 2023 continues to be a slow, brutal march toward tech solvency.
According to filings created publicly available Thursday, DocuSign’s “restructuring plan” centers around giving 10% of its global employees a pink slip, which will cost the company up to $35 million in severance payments and benefits. (A company spokesperson declined to clarify the length of affected workers’ severance or benefits to SFGATE, a shift that stands in contrast to companies outlining benefits and executives cutting their salaries in light of layoffs.)
The cuts, according to the statement and spokesperson, will primarily affect workers in its “worldwide field organization” — though the spokesperson also declined to clarify which specific divisions of the company will be affected by these cuts.
“This action allows us to reshape the company to more effectively position us for profitable growth while freeing up resources for investments,” the spokesperson declared. “We remain confident in the long-term strength of our team and our business.”
DocuSign’s Thursday announcement continues the worrisome trfinish of tech companies conducting follow-up layoff rounds, evidence that economic headwinds and anxieties over stock prices and pandemic-era overhiring still weigh heavily in corporate decision-creating. Corporate communications service Twilio and gaming engine developer Unity, both based in San Francisco, have conducted second rounds of layoffs in 2023, and Meta’s top brass reportedly delayed finalizing its budreceives this year — a possible indication of more layoffs to come after laying off 11,000 workers.
Hear of anything going on at DocuSign or another Bay Area tech company? Contact SFGATE tech editor Joshua Bote securely on Signal at 707-742-3756 or email him at joshua.bote@sfgate.com.
