Quarterly report pursuant to Section 13 or 15(d)

Restructuring Activity

v3.24.2
Restructuring Activity
6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Activity Restructuring Activity
From time to time, the Company approves and implements restructuring plans as a result of internal resource alignment and cost saving measures. Such restructuring plans may include terminating employees, vacating certain leased facilities, and cancellation of contracts.
During the year ended December 31, 2023, the Company entered into restructuring plans to reduce its workforce, or the 2023 Workforce Reductions. In the year ended December 31, 2023, the Company incurred $19.8 million in restructuring costs primarily related to severance costs and related expenses. In the six months ended June 30, 2024, the Company completed notification to remaining affected employees of the 2023 Workforce Reductions, and incurred $23.5 million in restructuring costs, or a cumulative total of $43.3 million.
Restructuring costs in the six months ended June 30, 2024 included $19.8 million in severance costs and related expenses, substantially all of which pertained to statutory severance benefits in the jurisdictions in which the terminated employees were employed, and $3.7 million in non-cash charges related to exiting facilities and writing off of assets. The Company does not expect to incur a material amount of additional restructuring costs associated with these restructuring plans.
The following table presents the activity related to the restructuring plans, which is included in restructuring charges in the consolidated statements of operations:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
(in thousands)
Employee separation expenses $ (145) $ 4,287  $ 19,793  $ 8,876 
Lease related charges 817  34  2,954  42 
Other 193  115  748  166 
$ 865  $ 4,436  $ 23,495  $ 9,084 
The following table presents a roll-forward of the Company’s restructuring liability for the six months ended June 30, 2024. The restructuring liability is included in accrued expenses and other current liabilities and other long-term liabilities in the consolidated balance sheets.
Employee Separation Expenses Lease Related Charges Other Total
(in thousands)
Liability as of December 31, 2023 $ 7,383  $ (2) $ 920  $ 8,301 
Restructuring charges 19,793  2,954  748  23,495 
Cash payments (16,760) (155) (769) (17,684)
Non-cash charges and adjustments 135  (2,762) (662) (3,289)
Liability as of June 30, 2024 10,551  35  237  10,823 
Less: current portion as of June 30, 2024 (10,551) (35) (237) (10,823)
Long-term portion as of June 30, 2024 $ —  $ —  $ —  $ —