UiPath layoffs will impact roughly 5% of staff as the robotic process automation (RPA) software company seeks to accelerate its path to profitability.
UiPath disclosed the layoff plan in an SEC filing, estimating that roughly 210 of the company's 4,200 employee positions will be eliminated by the end of Q3 in the current fiscal year.
UiPath is the second automation software company to cut staff in recent months. The other Hyperscience cut about 25% of its staff in Q1 of 2022.
UiPath: Growing RPA Revenues, Shrinking Losses
To be sure, UiPath's business continues to grow. Revenue was $245.1 million in Q1 of fiscal 2023, up 32 percent from the corresponding quarter last year, according to a June 1, 2022 earnings statement. The company also reduced its quarterly net loss to $122.5 million, down from a $240 million net loss in the corresponding quarter last year. Still, investors increasingly want tech companies to focus on profits.
The job cuts surface after UiPath in April 2022 hired Google Cloud and SAP veteran Robert Enslin as co-CEO — a title he now shares with UiPath founder Daniel Dines. At the same time, the company is busy growing partner relationships with global systems integrators (GSIs) and distribution partners.
Market forecasts suggest the overall automation software market will continue to grow rapidly Indeed, the global robotic process automation market is expected to reach $10.7 billion by 2027, expanding at a CAGR (compound annual growth rate) of 33.6% from 2020 to 2027, according to Grand View Research Inc.
RPA Software: Enterprise and MSP-SMB Options
Amid the RPA market growth, multiple companies are acquiring RPA software providers and associated RPA consulting skills.
Key enterprise-focused RPA software companies include Automation Anywhere, Blue Prism, Microsoft Power Automate, Salesforce, ServiceNow and UiPath, among others. Moreover, startups such as Rewst and ElectroNeek want to bring the power of RPA into the MSP sector.