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Restructuring Activities
12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Activities
Note 16. Restructuring Activities
In the fourth quarter of 2022, the Company’s board of directors approved a reduction-in-force plan (the “Q4’22 Plan”) as part of broader efforts to align the Company’s cost base with its strategic priorities. The restructuring costs associated with the Q4’22 Plan primarily consisted of severance payments, employee benefits and related costs. The Company incurred $15.2 million of restructuring costs of which $5.0 million was incurred in 2023. The execution of the Q4’22 Plan was completed as of December 31, 2023.
During the year ended December 31, 2023, the Company’s management took further headcount actions as part of broader efforts to optimize the Company’s cost structure and incurred incremental restructuring costs of $15.4 million. The restructuring costs primarily consisted of severance payments, employee benefits and related costs. The Company expects to substantially complete these additional actions in 2024 and estimates to incur incremental restructuring costs of approximately $5 million to $7 million in the first quarter of 2024, subject to local law and consultation requirements in certain countries. The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of or in connection with the implementation of these actions.
The following table summarizes the Company’s restructuring costs that were recorded as an operating expense in the accompanying Consolidated Statement of Operations for the year ended December 31, 2023 (in thousands):
Year Ended December 31,
20232022
Cost of revenues$876 $457 
Research and development4,457 5,321 
Sales and marketing8,758 9,695 
General and administrative6,277 2,711 
Total restructuring costs$20,368 $18,184 
The following table summarizes the Company’s restructuring liability that is included in accrued liabilities in the accompanying Consolidated Balance Sheets (in thousands):
Balance as of December 31, 2021$— 
Restructuring costs18,184 
Cash payments(12,699)
Balance as of December 31, 2022$5,485 
Restructuring costs20,368 
Cash payments(22,662)
Balance as of December 31, 2023$3,191