Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

LivePerson maintains restructuring initiatives 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 that commenced in the second quarter of 2022, 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 2023, due to the changing technology landscape related to the evolution of LLMs, we were able to identify opportunities for significant cost savings because the latest generation of LLMs is able to build a bot in minutes, enabling reduction of headcount previously devoted to bot-building. Additionally, we have moved to a product-led growth structure where we flattened the organization to align to more efficient sales and service support ratios. In connection with the restructuring initiatives, the Company recognized restructuring costs of $3.1 million and $2.4 million during the three months ended June 30, 2024 and 2023, respectively, and $6.4 million and $13.9 million during the six months ended June 30, 2024 and 2023, respectively, which is included in restructuring costs in the accompanying condensed consolidated statements of operations. Such costs primarily include severance and other compensation costs as well as IT infrastructure contract termination 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 June 30, 2024 and December 31, 2023:

	June 30, 2024		December 31, 2023
	(In thousands)
Balance, beginning of the year	$	2,076	$	803
IT contract termination (reversals) costs	(568)		5,744
Severance and other compensation associated costs	6,996		16,920
Cash payments	(7,160)		(21,391)
Balance, end of period	$	1,344	$	2,076

    

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, 2024.

The following table presents the detail of expenses for the Company’s restructuring charges for the three months and six months ended June 30, 2024 and 2023:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
	(In thousands)				(In thousands)
IT contract termination reversals	$	(1,284)	$	—	$	(568)	$	—
Severance and other associated costs	4,403		2,387		6,996		13,902
Total restructuring costs	$	3,119	$	2,387	$	6,428	$	13,902