Restructuring Costs

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

During the second quarter of 2022, LivePerson began a restructuring initiative to realign the Company’s cost structure to better reflect significant product and business model innovation and changes over the past year due to acquisitions and factors outside the control of the Company. As part of the restructuring initiative, the Company reoriented its global product and engineering organization for greater efficiency and focus, and reallocated some spending to increase its investment in customer success and go-to-market initiatives. The Company believes these initiatives will better align resources to provide further operating flexibility and position the business for long-term success. In connection with the restructuring initiatives, the Company recognized restructuring costs of $19.5 million during the year ended December 31, 2022, which is included in restructuring costs in the accompanying consolidated statements of operations. The majority of these costs relate to the Company’s Business segment. Such costs primarily include severance and other compensation costs.

In 2020, the Company went through a re-evaluation of its real estate needs. Following this re-evaluation, commencing in July 2020, the Company significantly reduced the real estate space it leases, resulting in the removal of the associated right-of-use assets. Furthermore, this resulted in various one-time expenses in connection with the abandonment of the majority of the Company’s leased facilities. The lease restructuring costs noted below are a result of this transition to an employee-centric model.

The following table presents the detail of the liability for the Company’s restructuring charges, which is included within accrued expenses and other current liabilities within the accompanying consolidated balance sheet, for the periods presented:


	December 31,
	2022		2021

	(In thousands)
Balance at January 1	$	1,694	$	4,732
Lease restructuring costs	442		724
Severance and other associated costs	19,525		2,673
Cash payments	(20,858)		(6,435)
Balance at December 31	$	803	$	1,694

The following table presents the detail of expenses for the Company’s restructuring charges for the periods presented:


	Year Ended December 31,
	2022		2021		2020

	(In thousands)
Lease restructuring costs:
ROU assets write down	$	—	$	—	$	13,938
Abandonment of property and equipment	—		—		5,147
Other lease restructuring costs	442		724		5,245
Total lease restructuring costs	442		724		24,330

Severance and other associated costs	19,525		2,673		5,090
Total restructuring costs	$	19,967	$	3,397	$	29,420