Automated software company UiPath (PATH.US) submitted documents to the US Securities and Exchange Commission (SEC) on Tuesday, stating that it will cut 10% of its workforce, approximately 420 jobs, as part of a broader restructuring plan.

The company stated that most of the layoffs will take effect at the end of the first quarter of the 2026 fiscal year. This quarter will end in April next year.

On Tuesday, UiPath's stock price fell by about 7% to close at $11.93. Its market cap has fallen by more than half so far this year, while the Nasdaq index has risen by 23% during the same period. UiPath's revenue growth has slowed sharply since its IPO in 2021, and it is one of the largest software products in US history.

Although UiPath's first-quarter earnings announced in May were better than expected, the company lowered its full-year revenue forecast, stating that it currently expects revenue to be between $1.4 billion and $1.41 billion, compared to the previous forecast of between $1.55 billion and $1.56 billion. The current forecast represents an annual growth rate of about 7.5%, lower than last year's 24%.

UiPath's software can automatically perform repetitive tasks. The company announced in May of this year that CEO Rob Enslin will step down on June 1 and will be succeeded by co-founder and former CEO Daniel Dines, who resigned as co-CEO in January of this year. This caused the stock to fall by 30%.

UiPath stated on Tuesday that it expects the cost associated with the layoffs to be between $15 million and $20 million, while the total cost of the restructuring will be between $17 million and $25 million. The company had previously announced two rounds of layoffs in 2022.

In its statement on Tuesday, UiPath stated: "These changes reflect our efforts to streamline our organizational structure, particularly in operations and corporate functions, prioritize our market investments, concentrate our R&D investments on AI, and drive innovation on our platform."