Software firm DocuSign will lay off around 670 of its employees, joining a growing list of American companies slashing personnel ahead of an impending recession.

The plan is intended to support the company’s growth and profitability goals, as well as to increase its operating margin.

DocuSign had 7,461 workers as of January, and the restructuring plan is expected to be completed in its entirety by the end of the fiscal year 2023, reducing staff levels by nine percent.

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As a result of the modifications, it expects to incur costs of $30 million to $40 million, mostly in the third and fourth quarters of 2023.

During the Covid pandemic, the maker of electronic signature software saw a surge in investor interest.

It is mostly because consumers and corporate personnel have become more reliant on digital means of document signing.

However, interest has waned, and shares are down 65 percent this year.

In June, many firms downgraded the company’s stock after first-quarter profits fell short of analyst expectations.

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Dan Springer, the previous CEO, resigned later that month.

DocuSign named an Alphabet employee, Allan Thygesen, as its new CEO earlier this month.

Source: CNBC

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