About a month after changing CEOs, business automation platform provider UiPath announced plans to reduce its employee base by 10 per cent, to approximately 4,200.
Most of these cuts are expected to occur by the end of the first quarter of fiscal year 2026 (specifically, in April 2025). Currently, UiPath is in the second quarter of its 2025 fiscal year.
UiPath claims that eliminating staff will enhance operational efficiency and customer-centricity. It wants to streamline its organizational structure, particularly in operational and corporate functions.
It added that its research and development investments will focus on artificial intelligence and innovation across the platform.
UiPath plans to allocate between $15 million and $20 million for employee termination benefits and $2 million and $5 million on lease exit and other contractual costs.
The total expenditure is estimated to be between $17 million and $25 million, primarily in cash, by the first quarter of fiscal year 2026.
Investment firm William Blair acknowledges the layoffs as unfortunate but believes they could reshape UiPath’s organisation and go-to-market strategy.
UiPath emphasises partnerships with global systems integrators (GSIs) to drive long-term business differentiation. The company is actively exploring opportunities in artificial intelligence (AI), with an over 70 percent acceptance rate for Autopilot expressions within its test group.
The company said it hopes Gen AI is expected to yield long-term benefits, enabling more complex automation and a higher return on investment.
