UiPath (NYSE:PATH) has announced a significant restructuring plan approved by its board of directors.

As part of the plan, the company expects to reduce its global workforce by approximately 10%.

Most of these reductions are anticipated to occur by the end of the first quarter of fiscal year 2026.

The restructuring will involve streamlining the organization’s structure, particularly in operational and corporate functions, prioritizing go-to-market investments, and concentrating research and development efforts on artificial intelligence to drive innovation across its platform.

UiPath estimates it will incur restructuring costs totaling approximately $17 million to $25 million, mainly consisting of $15 million to $20 million for employee termination benefits and $2 million to $5 million related to lease exit and other contractual costs.

These costs, primarily in cash expenditures, are expected to be incurred by the first quarter of fiscal year 2026.