UiPath Layoffs 2024: What to Know About the Latest PATH Job Cuts


  • UiPath (PATH) laid off 10% of its workforce, and the stock fell.
  • The robotic process automation company is growing but continuing to lose money.
  • Co-founder Daniel Dines hopes Microsoft (MSFT) Co-Pilot integration will right the ship.
UiPath Layoffs - UiPath Layoffs 2024: What to Know About the Latest PATH Job Cuts

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Artificial intelligence (AI) software company UiPath (NYSE:PATH) is laying off 10% of its staff, or 420 workers.

PATH stock fell 7% on July 9, opening at about $12 per share this morning. With a market capitalization of $6.8 billion and expected 2024 revenue of $1.4 billion, shares are now down 50% in 2024.

UiPath traded at nearly $80 per share soon after a 2021 public offering at $56 per share.

Off the Profit Path

UiPath makes an application program interface (API) that performs robotic process automation. For example, it can pull orders from e-mails and pass them into a bookkeeping system. UiPath calls these programs “robots.”

When I wrote about the company in 2022, I warned that it needed to become profitable and continue growing its top line to be worthy of investment. While UiPath has grown revenue by over 20% per year since then, it has continued to lose money. For the quarter ending in April, the first of its 2025 fiscal year, UIPath lost $28.7 million, 5 cents per share, on revenue of $335 million.

UiPath was founded in Romania and moved to the U.S. in 2012 with co-founder Daniel Dines, who replaced former CEO Rob Enslin in June. The 2021 IPO was one of the largest ever in the software industry up to that time, valuing the company at $36 billion.

Analysts approved of Dines’ restructuring plan but didn’t move their ratings beyond a hold or market perform. Many software companies have been struggling this year as enterprises wait for Large Language Models (LLMs) to bear fruit.

UiPath added what it calls generative AI (GenAI) features to its business automation platform this month, a system it calls Autopilot. It provides integration with Microsoft (NASDAQ:MSFT) Co-Pilot.

PATH Stock and UiPath Layoffs: What Happens Next?

UiPath is not a broken company. But it’s up to Dines to make it profitable. If he can, with its reduced workforce, there are investors who believe in it.

As of this writing, Dana Blankenhorn had a LONG position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

Article printed from InvestorPlace Media, https://investorplace.com/2024/07/uipath-layoffs-2024-what-to-know-about-the-latest-path-job-cuts/.

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