Shares of Romania-born NYSE-listed RPA major UiPath (NYSE: PATH) dropped by some 7%, returning close to the all-time low, after the company's CEO Daniel Dines announced a 10% personnel reduction in an attempt to "continue increasing operational efficiency through streamlining and a better prioritization of investments," according to Ziarul Financiar quoting the Romanian executive.

The company is laying off 10% of its workforce, or about 420 people, as part of a restructuring plan to manage operating expenses, according to a filing with the Securities and Exchange Commission.

"This was not an easy decision to make, and we are grateful and appreciate the contributions these talented people have made to UiPath and are committed to taking care of them during this time," said Daniel Dines, CEO and founder of UiPath.

The company estimates it will incur costs of between USD 15 million and USD 20 million related to employee severance benefits and approximately USD 2 million to USD 5 million related to lease exit and other contractual costs.

Total anticipated restructuring costs of approximately USD 17 million-25 million are expected to be primarily cash expenditures and are expected to be incurred through the first quarter of fiscal 2026.

Since the beginning of 2024, UiPath shares have halved.

iulian@romania-insider.com

(Photo source: Facebook/UiPath)