Restructuring Plan and Other Related Charges

9 Months Ended

Sep. 30, 2022

Restructuring Plan and Other Related Charges

Restructuring Plan and Other Related Charges

Note 15 – Restructuring and Other Related Charges

In December 2021, the Board approved a restructuring plan (“Plan”) designed to advance the Company’s operating model, streamline its business, improve efficiency, and enhance its capital resources. As part of the first phase of the Plan, the Company reduced headcount by eliminating positions in certain areas of its organization. The first phase of the Plan began and was substantially completed during the three months ended March 31, 2022.

In May 2022, the Board approved additional actions related to the Plan through the year ending December 31, 2025. This second phase of the Plan consists solely of headcount-related actions and is designed to continue to advance the Company’s operating model, streamline its business, improve efficiency, and enhance its capital resources.

In connection with the Plan, the Company incurred severance, retention pay, and related benefit costs. The Company recorded $2.7 million and $8.0 million in “Restructuring and other related charges” in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022, respectively.

In total, there were approximately 100 employees, across multiple functions, whose positions were made redundant.

The table below sets forth the changes in the carrying amount of the restructuring charge liability for the nine months ended September 30, 2022.
​

	Restructuring Charge Liability
(In thousands)	$
Balance as of December 31, 2021		—
Additions		8,000
Payments		(4,446)
Balance as of September 30, 2022	$	3,554

The $3.6 million restructuring charge liability at September 30, 2022 is included in “Accrued wages and payroll taxes” in the condensed consolidated balance sheet. The liability is entirely comprised of employee costs that are expected to be paid by September 30, 2023.