XML 35 R26.htm IDEA: XBRL DOCUMENT v3.23.3
Restructuring Plan
 9 Months Ended
Sep. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Plan

15. 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.

During the nine months ended September 30, 2023, the Company terminated and abandoned various leases of office spaces globally. The Company recorded a reduction in right-of-use assets of $44.6 million and an increase in lease liabilities of $6.3 million

for these leases during the period upon the lease terminations or abandonments. In the three months ended September 30, 2023, the Company incurred $0.8 million of restructuring charges in connection with these leases. In the nine months ended September 30, 2023, the Company incurred $93.3 million of restructuring charges, composed of $66.4 million related to facilities and $26.9 million for severance, employee related benefits, and other costs, including $1.0 million of stock-based compensation expense. The charges are recorded to the restructuring line item within the consolidated statements of operations.

The following table summarizes the Company's restructuring liabilities as of September 30, 2023:
 

 

 

Workforce reduction

 

 

Lease consolidation

 

 

 

(in thousands)

 

Beginning balance at January 1, 2023

 

$

—

 

 

$

—

 

Charges

 

 

26,838

 

 

 

65,612

 

Non-cash items

 

 

(953

)

 

 

(63,370

)

Payments

 

 

(25,885

)

 

 

(2,242

)

Ending balance at June 30, 2023

 

$

—

 

 

$

—

 

Charges

 

 

—

 

 

 

846

 

Non-cash items

 

 

—

 

 

 

—

 

Payments

 

 

—

 

 

 

(846

)

Ending balance at September 30, 2023

 

$

—

 

 

$

—

 

The actions associated with the global lease consolidation under the Restructuring Plan are expected to be completed in 2023. The Company estimates that it will incur additional charges of approximately $2.0 million to $4.0 million related to the lease consolidation.