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Shares of DocuSign (NASDAQ:DOCU) erased an earlier decline to trade more than 3% higher before the New York open after the company announced a restructuring plan aimed at improving operating margins and accelerating growth.
The plan, approved by the Board of Directors on September 26, will see DOCU slash its workforce by around 9%, the company said in an 8-K filing.
“The Company currently estimates that it will incur charges of approximately $30 to 40 million in connection with the Restructuring Plan,” DocuSign said.
The company expects these additional costs to be reflected in Q3 and Q4 with the plan expected to be completed by the end of DOCU’s 2023 fiscal year.
This marks yet another update from DocuSign after the company announced last week it hired Allan Thygesen as the new Chief Executive Officer. Thygesen is joining the tech security company from Google (NASDAQ:GOOGL) where he served as President of the Americas & Global Partners business unit.
Earlier this week, Evercore ISI analysts speculated that DOCU could be one of the potential M&A targets for IBM (NYSE:IBM).
