Restructuring Charges

9 Months Ended

Jun. 30, 2023

In the third quarter of fiscal 2023, the Company initiated a restructuring plan to better align strategic and financial objectives, optimize operations, and drive efficiencies for long-term growth and profitability, including a reduction in force affecting approximately 620 employees, or approximately 9% of the Company’s global workforce as of April 19, 2023. This included $53.2 million in severance benefits costs and related employer payroll taxes, and $3.5 million in charges related to the reduction of its leased facility space. The Company incurred $56.7 million in restructuring costs in the third quarter of fiscal 2023. The Company does not expect to record any significant future charges related to the third quarter of fiscal 2023 restructuring plan.

In the first quarters of fiscal 2023 and 2022, the Company initiated restructuring plans to match strategic and financial objectives and optimize resources for long term growth, including a reduction in force program. In the first quarter of fiscal 2023, the Company recorded a restructuring charge of $8.7 million. The Company did not record any significant future charges related to the first quarter of fiscal 2023 restructuring plan. In the first quarter of fiscal 2022, the Company recorded a restructuring charge of $7.9 million. The Company did not record any significant subsequent charges related to the first quarter of fiscal 2022 restructuring plan.

During the nine months ended June 30, 2023 and 2022, the following activity was recorded (in thousands):


	Nine months ended June 30,
	2023		2022
Employee Severance, Benefits and Related Costs
Accrued expenses, beginning of period	$	—	$	—
Restructuring charges:
Q1	8,740		7,909
Q3	53,193		—
Cash payments:
Q1	(8,740)		(7,689)
Q3	(44,820)		—
Accrued expenses, end of period	$	8,373	$	220

Charges related to employee severance, benefits, and related costs; as well as charges related to the reduction of the Company’s leased facilities are reflected in the restructuring charges line item on the Company's consolidated income statements.