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Restructuring
3 Months Ended
Apr. 30, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
September 2024 Reorganization
In September 2024, the Company implemented a reorganization plan to reduce its operating expenses and continue to increase efficiencies (the “September 2024 Reorganization”). The September 2024 Reorganization entailed a reduction in force of approximately 249 employees, or 15% of the Company’s global workforce at the time. As a result, in the third quarter of fiscal year 2025, the Company incurred $9.8 million of employee severance, termination and employment-related exit costs.
During the three months ended April 30, 2025, no further restructuring charges related to the September 2024 Reorganization were incurred. The following table summarizes the charges by line item within the Company’s condensed consolidated statements of operations for the year ended January 31, 2025:
Severance and employment-related termination costs
(in thousands)
Cost of revenue$961 
Research and development2,867 
Sales and marketing5,066 
General and administrative933 
Total$9,827 
During the three months ended April 30, 2025, changes to the restructuring-related liabilities were primarily due to cash disbursements of severance and employment-related exit costs. As of April 30, 2025, no restructuring-related liabilities remained in accrued and other current liabilities. As of January 31, 2025, $0.4 million in restructuring-related liabilities remained in accrued and other current liabilities.
January 2024 Reorganization
In January 2024, the Company implemented a reorganization plan to reduce its operating expenses and further increase efficiencies (the “January 2024 Reorganization”). The January 2024 Reorganization entailed a reduction in force of approximately 223 employees, or 12% of the Company’s global workforce at the time and other actions to reduce expenses. As a result, in the fourth quarter of fiscal year 2024, the Company incurred $9.9 million of employee severance, termination and employment-related exit costs and $2.7 million of facility exit costs, including impairment charges and accelerated depreciation of right-of-use assets.
During the three months ended April 30, 2025, no further restructuring charges related to the January 2024 Reorganization were incurred. The following table summarizes the charges by line item within the Company’s consolidated statements of operations where they were recorded in the fiscal year ended January 31, 2024:
Severance and employment-related termination costs
Facility and other contract terminations
Total
(in thousands)
Cost of revenue$632 $— $632 
Research and development7,540 — 7,540 
Sales and marketing500 — 500 
General and administrative1,274 2,708 3,982 
Total$9,946 $2,708 $12,654 
As of April 30, 2025 and January 31, 2025, restructuring liabilities related to the January 2024 Reorganization were $1.2 million entirely related to severance and employment-related exit costs.
September 2023 Reorganization
In September 2023, the Company implemented a reorganization plan to reduce its operating expenses and increase efficiencies (the “September 2023 Reorganization”). The September 2023 Reorganization entailed a reduction in force of approximately 168 employees, or 10% of the Company’s global workforce at the time, and other actions to reduce expenses. As a result, in the third quarter of fiscal year 2024, the Company incurred $15.6 million of employee severance and employment-related termination costs, and facility and other contract termination charges.
During the three months ended April 30, 2025, no further restructuring charges related to the September 2023 Reorganization were incurred. The following table summarizes the September 2023 Reorganization charges by line item within the Company’s statements of operations for the year ended January 31, 2024:
Severance and employment-related termination costs
Facility and other contract terminationsTotal
(in thousands)
Cost of revenue$996 $— $996 
Research and development4,183 — 4,183 
Sales and marketing1,343 — 1,343 
General and administrative890 8,189 9,079 
Total$7,412 $8,189 $15,601 
As of April 30, 2025 and January 31, 2025, restructuring liabilities related to the September 2023 Reorganization were $0.3 million, including $0.1 million severance and employment-related costs and $0.2 million in facility exit costs.