Restructuring Costs

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

On April 20, 2020, the Company approved a restructuring plan to address the impact of COVID-19 on the Company’s business. The restructuring plan was completed on April 21, 2020 and resulted in a reduction of approximately 30% of the Company’s workforce. During the second quarter and first half of 2020, the Company recorded $17.0 million in restructuring costs within operating expenses, which was comprised of $8.6 million in compensation costs, $4.2 million in related non-cash lease expenses and impairment, and $4.2 million in impairment of internally developed software. No such costs were recorded in the second quarter and first half of 2019. Of the $8.6 million in compensation costs expensed, $7.2 million was paid out during the second quarter of 2020, resulting in a restructuring liability of $1.4 million, included in “Accrued expenses and other liabilities” on the Condensed Consolidated Balance Sheet, as of June 30, 2020.

The following table presents the restructuring costs for the second quarter and first half of 2020 recorded in the Company’s Condensed Consolidated Statements of Operations:



Sales and marketing	$	1,379
Origination and servicing	906
Engineering and product development	7,472
Other general and administrative	7,279
Total	$	17,036