UiPath To Cut Workforce By 10%

UiPath, Inc. PATH shares are trading lower Tuesday after the company revealed plans for restructuring actions to manage its operating expenses including a 10% workforce reduction.

The Details:

UiPath revealed in an SEC filing that its board of directors has approved restructuring actions to manage its operating expenses and will include an overall reduction of approximately 10% of the company's global workforce of approximately 4,200. The company said most of this reduction is expected to occur by the end of the first quarter of fiscal year 2026. 

The company estimates it will incur costs of $15 million to $20 million related to employee termination benefits and approximately $2 million to $5 million in connection with lease exit and other contractual costs.

The total anticipated restructuring costs of approximately $17 million to $25 million are predominantly expected to be cash expenditures and are expected to be incurred by the first quarter of fiscal year 2026.

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According to data from Benzinga Pro, UiPath shares are trading below the stock’s 50-day moving average of $15.71 and are approaching its 52-week low of $11.07. 

Will PATH Stock Go Up?

When trying to assess whether or not UiPath will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $15.73 on UiPath. The Street high target is currently at $25 and the Street low target is $12. Of all the analysts covering UiPath, 2 have positive ratings, 13 have neutral ratings and no one has negative ratings.

In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering UiPath have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. UiPath is 32.92% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about UiPath, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

PATH Price Action: According to Benzinga Pro, UiPath shares are down 6.9i% at $11.94 at the time of publication Tuesday.

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Image: Courtesy of UiPath, Inc.