Restructuring

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

3. Restructuring

2025 Restructuring Plan

On February 3, 2025, in connection with the completion of the Acquisition, the Company announced a restructuring plan (the “Plan”), as part of its efforts to streamline operations and reduce duplication of roles. The Plan involves a reduction in workforce of approximately 15%. The Company estimates that it will incur approximately $16 million to $24 million in charges in connection with the Plan, of which approximately $12 million to $18 million is expected to be incurred in 2025. These charges primarily consist of severance and other related payments.

The actions associated with the employee restructuring under the Plan were initiated in February 2025, are expected to be implemented in large part by the end of the second quarter of 2025 and completed by the first quarter of 2026. The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan. During the three months ended March 31, 2025, the Company recorded pre-tax charges of approximately $7.3 million, within restructuring charges in the Company’s condensed consolidated statement of operations, $0.8 million of which were related to research and development, $5.0 million related to sales and marketing, and $1.5 million related to general and administrative expenses.


	Three Months Ended March 31, 2025
	(In thousands)
Severance and related costs	$	6,847
Legal costs	432
Total restructuring charges	$	7,279

The employee severance and related costs for the three months ended March 31, 2025 are related to the termination of approximately 184 employees.

The following table summarizes accrued severance and related liabilities recorded within accrued compensation and benefits and accrued and other current liabilities in the Company’s condensed consolidated balance sheets for the three months ended March 31, 2025.


	Severance and related costs		Legal costs		Total
	(In thousands)
Restructuring charges	$	6,847	$	432	$	7,279
Cash payments	(2,851)		—		(2,851)
Foreign currency translation	(6)		—		(6)
Balance as of March 31, 2025	$	3,990	$	432	$	4,422