Quarterly report pursuant to Section 13 or 15(d)

Restructuring

Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

In 2022, the Company embarked on a restructuring program to improve execution and drive efficiency across the organization. This program is a framework for identifying, prioritizing and executing operational improvements. Restructuring charges incurred consist of severance and other employee costs, costs for optimizing the Company’s geographic presence (“Facility Footprint Optimization”), and consulting and other costs. There were no such charges for the three months ended March 31, 2022.

The following table summarizes the changes in the Company’s accrued restructuring balance (in thousands):


	Severance and Other Employee Costs		Facility Footprint Optimization		Consulting and Other Costs		Total
Balance as of December 31, 2022	$	559	$	—	$	960	$	1,519
Restructuring charges incurred	3,105		913		106		4,124
Impairment of facility related assets	—		560		—		560

Cash payments and other adjustments(1)	(1,285)		(564)		(346)		(2,195)
Balance as of March 31, 2023	$	2,379	$	909	$	720	$	4,008
Current liabilities							$	4,008
Long-term liabilities							—
							$	4,008

(1) Other adjustments include non-cash asset charges related to Facility Footprint Optimization costs.

The Company will continue this restructuring program in 2023 and expects to incur additional restructuring charges of approximately $3.0 million. The Company estimates these additional restructuring charges to be comprised of approximately $1.0 million in severance and other employee costs, $1.0 million of Facility Footprint Optimization costs, and $1.0 million of consulting and other costs. The Company’s restructuring activities are expected to be complete by December 31, 2023.