UiPath to cut 10% of its workforce in a company-wide restructuring.

• UiPath, a software developer, will eliminate approximately 420 jobs, which represents 10% of its workforce, as part of a comprehensive corporate restructuring.
• On Tuesday, UiPath's stock price dropped by 7%, bringing its year-to-date decline to over 50%.
• In June, UiPath announced that CEO Rob Enslin was resigning effective that date and would be replaced by co-founder Daniel Dines, who had previously served as co-CEO.

The company, which develops automation software, announced that it is cutting 10% of its workforce, or approximately 420 jobs, as part of a broader restructuring, according to a filing with the SEC on Tuesday.

The company announced that most of the layoffs will be completed by the end of the first quarter of fiscal 2026, which ends in April.

UiPath's stock price dropped by 7% on Tuesday, resulting in a loss of more than half its value this year. Despite this, the Nasdaq has experienced a 23% increase over the same period. Following its IPO in 2021, UiPath faced a significant slowdown in revenue growth, making it one of the largest U.S. software offerings on record.

Although UiPath exceeded expectations in its fiscal first-quarter earnings in May, the company revised its full-year guidance and now anticipates revenue between $1.4 billion and $1.41 billion, down from its previous projection of $1.55 billion to $1.56 billion. This forecast would result in an annual growth rate of approximately 7.5%, a significant decrease from the 24% growth experienced the previous year.

UiPath automates repetitive tasks through software. In May, the company announced that CEO Rob Enslin was resigning effective June 1, and would be replaced by co-founder Daniel Dines, who had stepped down as co-CEO in January. This move caused the stock to drop by 30%.

On Tuesday, UiPath announced that it anticipates spending between $15 million and $20 million on costs related to layoffs, and between $17 million and $25 million on restructuring expenses. The company had previously announced two rounds of job cuts in 2022.

UiPath announced on Tuesday that the changes they have made reflect their efforts to restructure the company, streamline their operations and corporate functions, prioritize their go-to-market investments, and focus their research and development investments on artificial intelligence and driving innovation across their platform.

— CNBC's Rohan Goswami contributed to this report.