The Docusign Inc. website. on Laptop, held in Dobbs Ferry, New York, USA, on Thursday, April 1, 2021.

Tiffany Hagler-Geard | Bloomberg | Getty Images

DocuSign will cut 9% of its workforce as part of a major restructuring plan, the company announced Wednesday.

The plan is designed to support the company’s growth and profitability goals and improve its operating margin. As of January, DocuSign had 7,461 employees and said the restructuring plan would be largely complete by the end of fiscal 2023.

Shares of DocuSign closed up 5.09% on Wednesday.

It is expected to incur charges of between $30 million and $40 million, largely in the third and fourth quarters of fiscal 2023, as part of the changes.

The e-signature software maker enjoyed a wave of increased investor interest during the Covid pandemic as consumers and corporate employees became more dependent on digital ways to sign documents. But interest has waned and shares have fallen 65% so far this year.

Several firms downgraded the company’s stock in June after first-quarter earnings missed analysts’ estimates. Dan Springer, the former CEO, stepped down later that month. DocuSign announced earlier this month that it hired Alphabet executive Alan Thiegesen as its next CEO.

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