UiPath forced out CFO who tried to rein in spending, sources say - Business Insider

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Insiders say that hot startup UiPath forced its CFO out because she tried to rein in its exorbitant spending, amid layoffs that are sending ripples through the automation industry

This story requires our BI Prime membership. To read the full article,In October, hot automation startup UiPath laid off about 400 people — including its chief financial officer — just months after raising $568 million at a $7 billion valuation.

RPA, as it is known, refers to software that helps businesses automate common, repetitive computer tasks. UiPath appeared to own that space in January when it announced a whopping $568 million in VC funding, boosting its valuation to $7 billion. They say the company had loose policies that led to excessive travel, that it had leased a jet for use by executives, covered frequent steak dinners priced at $200 a plate, and exceeded by about $3 million its budget for a major Las Vegas event last month. They say many members of the finance team Myers set up in the US, which had tried to implement more stringent policies, were among those let go.was held at the Bellagio, a prominent hotel on the Las Vegas strip.

Myers has "agreed to stay on in a transitional role" through the end of the year, the company said. Myers declined to comment to Business Insider.When UiPath introduced Myers as its CFO in January, founder andin a press statement that the startup was "excited to have someone of her caliber and experience to lead our financial operations as we prepare for the next phase."

And so, the sudden departure of a veteran and highly-respected CFO was clearly staggering and raises many questions, Ray Wang, principal analyst with Constellation Research, a technology market research firm, said. "In the last 10 months, we grew our workforce by 60%… sort of a 'blitz scaling' approach," he said. "Through the waves of our recent hiring, we have worried that we could become less agile and responsive to customers," he said.

 

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