Restructuring and Related Charges

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

14. Restructuring and Related Charges

Beginning with the appointment of the Company’s new management team in April 2022 and as further announced in August 2022, the Company has implemented a restructuring plan, including a reduction in force, to improve operational efficiency, achieve cost savings and align the Company’s workforce to the future needs of the business. In addition to the reduction in force, the Company is reducing leased office space, optimizing its manufacturing footprint and streamlining support functions. The Company is developing a more disciplined cost management culture throughout its organization by investing in training and advanced information systems.

The Company records restructuring and related charges as incurred. These items are classified within restructuring and related charges in the consolidated statements of operations for the year ended December 31, 2023, and primarily include severance costs as well as facility costs (net of sublease income) for leased space in South San Francisco that the Company has vacated as part of the restructuring plan. The Company recognized restructuring and related charges of $7.1 million and $9.7 million for the years ended December 31, 2023 and 2022, respectively.

The Company expects to relieve the majority of the existing liability for restructuring charges primarily related to employee severance in 2024. Ongoing restructuring charges will continue to be incurred for facility related costs through the termination of the facility leases. These estimates are subject to a number of assumptions, and actual results may differ.

The following table summarizes the change in the Company’s restructuring and other related liabilities for the years ended December 31, 2023 and 2022 (in thousands):


	Severance and other employee- related benefits(1)			Facility Costs			Other(2)			Total
Balance at December 31, 2021	$	—		$	—		$	—		$	—
Restructuring and related charges		5,849			2,885			998			9,732
Cash payments		(1,835	)		(2,885	)		(979	)		(5,699	)
Balance at December 31, 2022	$	4,014		$	—		$	19		$	4,033
Restructuring and related charges		2,379			4,160			537			7,076
Cash payments		(5,568	)		(4,160	)		(556	)		(10,284	)
Balance at December 31, 2023	$	825		$	—		$	—		$	825

(1)

Restructuring liabilities are recorded in accrued compensation and related benefits on the consolidated balance sheets.

(2)

Other restructuring liabilities are comprised mainly of sublease commissions and are recorded in other accrued liabilities on the consolidated balance sheets.

The Company’s restructuring and related charges by segment and corporate were as follows (in thousands):


	Year Ended December 31,
	2023		2022
Restructuring:
Proteomics	$	1,010	$	1,363
Genomics		714		1,273
Corporate expenses		5,352		7,096
Total restructuring and related charges	$	7,076	$	9,732