DocuSign stock jumps on job cut plan ahead of new CEO Thygesen

DocuSign stock jumps on job cut plan ahead of new CEO Thygesen

Updated at 10:06AM EST

DocuSign (DOCU) Shares rose on Wednesday after the online signature selling group revealed a restructuring plan that will take place under new CEO Alan Thijson.

The group said it would cut about 9% of its workforce — or perhaps as many as 670 people — at a cost of about $35 million, as it heads toward “improving operating margin and supporting the company’s growth, size, and profitability goals,” according to its filing with the US Securities and Exchange Commission. The company said the plan should be “substantively complete” by the end of the current fiscal year.

DocuSign shares were ticked 3.5% higher in early trading Wednesday to trade at $54.80 per share, a move that would leave the stock tumble year-to-date by about 65%.

Late last week, DocuSign appointed Thygesen, the former CEO of Google Ads, as a permanent replacement for outgoing CEO Dan Springer, who has run the group since 2017. He will take over as CEO on October 10.

DocuSign, which has been struggling to attract investor interest as pandemic-era restrictions send more and more professionals back to their desks, earned 44 cents a share over the three months ending in July, beating Street expectations on a non-GAAP basis by nearly 2 cents. for each share.

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The group also posted a 22% gain in revenue, $622.2 million, and said full-year sales will likely rise to $2.47-2.48 billion and bills between $2.57 billion and $2.57 billion, thanks in part to an expanded partnership with Microsoft. . (MSFT) Which will see the technology giant’s use of DocuSign’s products and services in contract management workflows.

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