NEW YORK — UiPath, an
enterprise automation and AI software company, announced a restructuring to reduce operating expenses. These actions include an overall reduction of 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. The announcement was made in an SEC filing.
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.
Daniel Dines, founder and former CEO of UiPath, took over the CEO position again on June 1.