SoftBank-backed Automation Anywhere starts layoffs

Automation Anywhere, a robotic process automation company valued at $6.8 billion last fall by venture capitalists, began laying off hundreds of employees on Monday, Axios has learned.

Why it matters: The coronavirus pandemic will push more enterprises toward automated software, but the shift isn't happening fast enough to stem top-line losses for Silicon Valley companies like AA.

What they're saying:

"Due to the Covid-19 pandemic and the changes it has brought to the global economy, Automation Anywhere is adjusting operations and restructuring parts of the company, which will result in a workforce reduction. Although we are confident in the company’s strength and ability to grow going forward, given the current circumstances, we must reduce expenses in some areas and realign our resources to new skill sets in key growth areas, such as cloud and digital, that offer higher value service to customers."

Automation Anywhere declined to specify how many of its 2,600 employees are receiving pink slips, although Axios has heard the number is north of 10%.

Investors: The San Jose, California-based company has raised $840 million in venture capital funding from firms like SoftBank, Salesforce Ventures, Goldman Sachs, NEA, Workday Ventures, General Atlantic and World Innovation Lab.