Live In Play

Live In Play®

Updated: 09-Jul-24 07:08 ET

PATH: UiPath approved restructuring - expected to include an overall reduction of approximately 10% of the Company’s global workforce of approximately 4,200 as of July 1, 2024 (12.82)

On July 8, 2024, the board of directors (the "Board") of UiPath, Inc. (the "Company") approved restructuring actions to manage its operating expenses. These actions are expected to include an overall reduction of approximately 10% of the Company's global workforce of approximately 4,200 as of July 1, 2024, with most of this reduction expected to occur by the end of the first quarter of fiscal year 2026. Worldwide, the Company expects the workforce reduction to comply with applicable laws including consultation requirements.
This workforce reduction is aimed at further driving operational efficiency and customer centricity. 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.
The Company estimates that it will incur costs of $15 million to $20 million related to employee termination benefits and approximately $2 million to $5 million in connection with lease exit and other contractual costs. The total anticipated restructuring costs of approximately $17 million to $25 million are predominantly expected to be cash expenditures and are expected to be incurred by the first quarter of fiscal year 2026. The restructuring costs that the Company expects to incur are subject to several assumptions including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. The Company may also incur other costs or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the implementation of the restructuring actions.