Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

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 then-recent changes 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. In connection with the restructuring initiatives, the Company recognized restructuring costs of $2.1 million and $7.1 million during the three months ended September 30, 2023 and 2022, respectively, and $16.0 million and $17.9 million during the nine months ended September 30, 2023 and 2022, respectively, which is included in restructuring costs in the accompanying condensed consolidated statements of operations. The majority of these costs relate to the Company’s Business segment. Such costs primarily include severance and other compensation-related costs.

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 condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022:

	September 30, 2023		December 31, 2022
	(In thousands)
Balance, beginning of the year	$	803	$	1,694
Lease restructuring costs	—		442
Severance and other compensation associated costs	15,999		19,525
Cash payments	(14,642)		(20,858)
Balance, end of period	$	2,160	$	803

The Company anticipates that payments associated with the employee severance and other compensation associated costs reflected in the table above will be substantially completed by December 31, 2023.