Restructuring Plan

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

14. Restructuring Plan

On January 25, 2023, the Company's board of directors authorized a restructuring plan (the “Restructuring Plan”) that is designed to reduce operating costs and enable investment in key opportunities for long-term growth while driving continued profitability. The Restructuring Plan includes a reduction of the Company’s workforce by approximately 7% and a global lease consolidation to create higher density across our workspaces.

In the three months ended March 31, 2023, the Company incurred $28.6 million of restructuring charges, primarily composed of $26.8 million for severance, employee related benefits, and other costs, including $1.0 million of stock-based compensation expense, and $1.8 million related to facilities. The charges were recorded to the restructuring line item within the consolidated statements of operations.

The following table summarizes the Company's restructuring liabilities, which is recorded in current liabilities, as of March 31, 2023. The Company expects to make most payments associated with these restructuring costs in the second quarter of 2023.


	Restructuring liability
	(in thousands)
Beginning balance at January 1, 2023	$	—
Charges		25,793
Payments		(21,903	)
Ending balance at March 31, 2023	$	3,890

The Company expects to make most payments associated with these restructuring costs in the second quarter of 2023. The actions associated with the workforce reduction under the Restructuring Plan are expected to be complete by the end of the second quarter of 2023, subject to local law and consultation requirements. The actions associated with the global lease consolidation under the Restructuring Plan are expected to be fully completed in 2023. The Company estimates that it will incur additional charges of approximately $62.0 million to $69.0 million, majority of which relates to lease consolidation.