DocuSign

DocuSign is an American company headquartered in San Francisco, California that allows organizations to manage electronic agreements. As part of the DocuSign Agreement Cloud, DocuSign offers an electronic signature, a way to electronically sign on different devices.

History

2023: Downsizing another 10% of the state

On February 16, 2023, DocuSign announced a 10% reduction in headcount. Mass layoffs occur against the background of a decrease in demand for electronic signature technologies in the United States.

As of January 2022, DocuSign had 7,461 employees in the United States. Later, in September 2022, the company decided to say goodbye to 9% of them. The round of layoffs in early 2023 will affect about 700 people. DocuSign announced that they are cutting employees to support the company's growth, scale and profitability goals in 2023. As a result of layoffs, the service will incur asset depreciation costs in the amount of $25 to $35 million, mainly in the first quarter of fiscal 2024.

DocuSign cuts another 10% of state as U.S. electronic signature demand collapses

The restructuring of DocuSign, according to the plans of the company's management, is likely to be completed by the end of the second quarter of 2023. Restructuring actions will allow the service to reshape the company to more actively position for profitable growth while freeing up investment resources. Since its foundation in 2003, the service has conducted more than 950 million successful transactions through its platform.

DocuSign's sales and marketing strategy focuses on Global 2000 listed corporations. According to CNBC, service uses its online self-service channels, which is the best cost-return strategy for such customers. The company offers subscriptions to its platform through various editions of the product, which differ in functionality that takes into account both the individual needs of various users and the peculiarities characteristic of various geographical areas and sectors of the economy.

DocuSign joins a growing list of tech companies that announced layoffs in 2023. As rising interest rates in late 2022 and slowing consumer demand have raised fears of a recession and pushed companies in the United States to cut costs.^[1]

2022: Reduction of 9% of the state due to the collapse of demand for electronic signature in the United States

On September 28, 2022, DocuSign announced that it would lay off 9% of its employees as part of a massive restructuring plan to be led by new CEO Allan Tigesen.

The plan is designed to support goals to improve operating margins and support the company's goals of growth, scale and profitability. As of January 2022, DocuSign employed 7,461 people and will leave about 670 as a result of staff cuts from the company. DocuSign also said the restructuring plan would be largely completed by the end of fiscal 2023.

DocuSign cuts 9% of state as U.S. electronic signature demand collapses

The manufacturer of electronic signature software enjoyed increased investor interest during the Covid-19 pandemic, as consumers and corporate workers began to rely more on digital ways to sign documents. However, after the restrictions were lifted, interest in the technology faded, and the company's shares fell 65% from January to the end of September 2022. The company expects that as part of the layoffs, expenses will be made in the amount of $30 million to $40 million, mainly in the third and fourth quarters of fiscal year 2023.

Several companies downgraded the company's stock in June 2022 after first-quarter earnings fell short of analysts' expectations. Dan Springer, a former CEO who has run the company since 2017, left his post that month. DocuSign announced in early October 2022 that it had hired former Google ad head for the Americas Allan Tigesen as the next CEO.

He will replace interim CEO Mary Agnes Wilderotter, she will complete her duties, but will assist Tigesen in the restructuring process. Wilderotter will continue as chairman of DocuSign's board of directors. Tigesen will take up his duties on October 10, 2022.^[2]

Notes