DocuSign, the online signature provider, has announced a restructuring plan that includes laying off 6% of its workforce, approximately 440 jobs, in an effort to enhance the company’s financial and operational efficiency. The majority of the impacted employees will come from the sales and marketing departments, out of the company’s total 7,336 workers.

The announcement led to a more than 6% drop in DocuSign’s shares on Tuesday morning. The company expects the restructuring to be largely completed by the end of its second fiscal quarter of 2025 and aims to meet or exceed its fourth-quarter and fiscal-2024 guidance outlined in a release in December. Further details about the restructuring plan will be shared when the fourth-quarter results are released.

Earlier in January, DocuSign’s shares surged amid reports of potential acquisition talks with Bain Capital and Hellman & Friedman. However, discussions have reportedly stalled due to disagreements over the deal price.

DocuSign’s move to downsize its workforce comes as part of its strategic efforts to streamline operations and improve overall performance.

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