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Restructuring
6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring
7.
Restructuring

In November 2023, we announced a strategic reduction in workforce of approximately 30%. The workforce reduction included total restructuring charges of $6.7 million, comprised primarily of severance payments and wages for the 60-day notice period in accordance with the California Worker Adjustment and Retraining Notification (WARN) Act. In most cases, the severance payments were paid as a lump sum in January 2024. All of the costs are cash expenditures and represent one-time termination benefits. As of June 30, 2024, $0.1 million of further separation benefits are required for the November 2023 reduction in workforce.

In January 2024, we announced a strategic reduction in workforce of approximately 25%. The workforce reduction resulted in total restructuring charges of $5.1 million, comprised primarily of severance payments and wages for the 60-day notice period in accordance with the California WARN Act. In most cases, the severance payments are being paid during the

first half of 2024. Certain of the notified employees had employment agreements that provided for separation benefits in the form of salary continuation, which are being paid from February 2024 through January 2025. As of June 30, 2024, approximately $0.8 million of further separation payments and benefits are required for the January 2024 reduction in workforce. The majority of the associated costs are cash expenditures and primarily represent one-time termination benefits.

The following is a summary of restructuring charges associated with the reductions in force for the periods presented:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

 

(in thousands)

 

Research and development expense

 

$

356

 

 

$

 

 

$

3,750

 

 

$

 

General and administrative expense

 

 

 

 

 

 

 

 

1,357

 

 

 

45

 

Total restructuring charges

 

$

356

 

 

$

 

 

$

5,107

 

 

$

45

 

The following restructuring liability activity was recorded in connection with the reductions in force for the six months ended June 30, 2024:

 

 

(in thousands)

 

Liability balance, January 1, 2024

 

$

4,923

 

Restructuring charges

 

 

5,107

 

Cash payments

 

 

(8,533

)

Non-cash settlements/adjustments

 

 

(613

)

Liability balance, June 30, 2024

 

$

884

 

The liability balance as of June 30, 2024 and December 31, 2023 is recorded within other current liabilities on the accompanying condensed consolidated balance sheet.