DocuSign, who are having security problems in Australia with malicious mailings of DocuSign emails, is cutting around 6% of its workforce as part of a restructuring effort after talks to sell itself appear to have stalled, according to Bloomberg.
The company had been in talks with Bain Capital and Hellman & Friedman about acquiring it, but those discussions appear to have fallen through.
Bloomberg reports that several Wall Street banks including JPMorgan Chase & Co. and Bank of America Corp. have held talks to provide as much as $8 billion in financing for a buyout of DocuSign.
The company confirmed that the move will mostly affect staff in sales and marketing. It had 7,336 employees at the end of 2023, and a result of the layoffs, will incur about $28 million to $32 million in restructuring charges. The stock slipped 7.4% in premarket trading in New York.
DocuSign said in a statement that its restructuring plan is designed to strengthen DocuSign’s financial and operational efficiency as it continues to grow as an independent public company.
The company said it expects to meet or exceed its fourth quarter and fiscal 2024 guidance.
DocuSign fared well during the pandemic, but has been hurt by increasing competition from Adobe’s document business, and its valuation suffered as investors rejected unprofitable software stocks.
