Nearly 50,000 tech workers have lost their jobs since the start of this year

UiPath will cut approximately 420 jobs as part of a broader restructuring, the company announced in a filing with the SEC on Tuesday.

The majority of these layoffs will be completed by the end of the first quarter of fiscal 2026, which concludes next April.

On Tuesday, UiPath shares dropped about 7%, closing at $11.93, and have now lost more than half their value this year. During the same period, the Nasdaq has risen 23%. UiPath has experienced a significant slowdown in revenue growth since its IPO in 2021, which was one of the largest U.S. software offerings on record.

Despite reporting better-than-expected fiscal first-quarter earnings in May, the company lowered its revenue guidance for the full year. It now expects between $1.4 billion and $1.41 billion in revenue, down from the previous guidance of $1.55 billion to $1.56 billion. This current forecast suggests annual growth of about 7.5%, a drop from 24% the prior year.

UiPath, which creates software to automate repetitive tasks, announced in May that CEO Rob Enslin would resign effective June 1, to be succeeded by co-founder Daniel Dines, who had stepped down as co-CEO in January. This leadership change led to a 30% decline in the stock price.

On Tuesday, UiPath stated it anticipates $15 million to $20 million in costs related to the layoffs and total restructuring costs between $17 million and $25 million. The company had previously announced two rounds of job cuts in 2022.

“These changes reflect efforts to reshape the organization by streamlining the Company’s structure, particularly in operational and corporate functions, better prioritizing our go-to-market investments, and focusing our research and development investments on artificial intelligence and driving innovation across our platform,” UiPath said in Tuesday’s statement.