UiPath Layoffs 2022: What to Know About the Latest PATH Job Cuts


  • UiPath (PATH) announced upcoming layoffs, with 6% of its workforce expected to be cut.
  • The company also released preliminary results for UiPath’s upcoming quarterly report.
  • Financial traders bought up PATH stock after catching wind of these developments.
UiPath layoffs - UiPath Layoffs 2022: What to Know About the Latest PATH Job Cuts

Source: dennizn / Shutterstock.com

This morning, investors absorbed multiple pieces of vital information about UiPath (NYSE:PATH) from a fresh Form 8-K filing. First of all, PATH stock is spiking because the company disclosed its upcoming “restructuring actions,” which will involve layoffs. Also, UiPath disclosed its preliminary data for results for the company’s third fiscal third quarter of 2023, which ended Oct. 31, 2022. Overall, the expected quarterly results look positive.

New York-based UiPath is a software company with a platform that deploys robotic process automation (or RPA) solutions, mainly for businesses. Like practically all other U.S. businesses, UiPath has been impacted by a weakening economy.

Hence, it shouldn’t be too surprising that UiPath intends to implement “further restructuring actions,” which is a fancy way of saying more layoffs. The company had already announced “restructuring actions” in a June filing.

This time around, UiPath will enact “an additional reduction across functions of approximately 6%” of the company’s global workforce. So, how did the market react to this news?

UiPath Layoffs: What’s Happening With PATH Stock?

Oftentimes, financial traders will respond positively to workforce reductions because they can help a business firm up its balance sheet. Therefore, it makes sense that PATH stock spiked 14% this morning.

The upcoming layoffs aren’t the only likely catalyst, though. In the same Form 8-K, UiPath revealed the preliminary results for its fiscal third quarter of 2023. As UiPath mentioned, the preliminary “Revenue, ARR [annual recurring revenue], and non-GAAP operating income are all above” the previously released guidance for this quarter.

In other words, the preliminary data were largely positive. Currently, UiPath expects to report quarterly revenue of around $260 million. The company also anticipates ARR of approximately $1.108 billion as of Oct. 31, 2022. Additionally, UiPath models quarterly non-GAAP operating income of roughly $15 million.

Between the planned layoffs and the preliminary financial data, traders have a lot to think about today. So far, however, it appears that the verdict is positive on PATH stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/11/uipath-layoffs-2022-what-to-know-about-the-latest-path-job-cuts/.

©2023 InvestorPlace Media, LLC