Restructuring Charges

3 Months Ended

Apr. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

January 2024 Reorganization

In January 2024, the Company implemented a reorganization plan to reduce its operating expenses and further increase efficiencies (the “January 2024 Reorganization”). The January 2024 Reorganization entailed a reduction in force of approximately 223 employees, or 12% of the Company’s global workforce at the time and other actions to reduce expenses. As a result, in the fourth quarter of fiscal year 2024, the Company incurred $9.9 million of employee severance, termination and employment-related exit costs and $2.7 million of facility exit costs, including impairment charges and accelerated depreciation of right-of-use assets.

During the three months ended April 30, 2024, no further restructuring charges related to the January 2024 Reorganization were incurred. The following table summarizes the charges by line item within the Company’s consolidated statements of operations where they were recorded in the fiscal year ended January 31, 2024:

	Severance and employment-related termination costs		Facility and other contract terminations		Total
	(in thousands)
Cost of revenue	$	632	$	—	$	632
Research and development	7,540		—		7,540
Sales and marketing	500		—		500
General and administrative	1,274		2,708		3,982
Total	$	9,946	$	2,708	$	12,654

During the three months ended April 30, 2024, changes to the restructuring-related liabilities were primarily due to cash disbursements of severance and employment-related exit costs. As of April 30, 2024, there were $3.0 million of restructuring-related liabilities, including $2.6 million in severance and employment-related exit costs and $0.4 million in facility exit cost. As of January 31, 2024, restructuring-related liabilities were $10.6 million, including $10.2 million in severance and employment-related exit costs and $0.4 million in facility exit costs.

September 2023 Reorganization

In September 2023, the Company implemented a reorganization plan to reduce its operating expenses and increase efficiencies (the “September 2023 Reorganization”). The September 2023 Reorganization entailed a reduction in force of approximately 168 employees, or 10% of the Company’s global workforce at the time and other actions to reduce expense. As a result, in the third quarter of fiscal year 2024, the Company incurred $15.6 million of employee severance and employment-related termination costs, and facility and other contract termination charges.

During the three months ended April 30, 2024, no further restructuring charges related to the September 2023 Reorganization were incurred. The following table summarizes the charges by line item within the Company’s consolidated statements of operations where they were recorded in the fiscal year ended January 31, 2024:

	Severance and employment-related termination costs		Facility and other contract terminations		Total
	(in thousands)
Cost of revenue	$	996	$	—	$	996
Research and development	4,183		—		4,183
Sales and marketing	1,343		—		1,343
General and administrative	890		8,189		9,079
Total	$	7,412	$	8,189	$	15,601

During the three months ended April 30, 2024, changes to the restructuring-related liabilities were primarily due to cash disbursements of severance and employment-related exit costs. As of April 30, 2024, there were $0.4 million in restructuring-related liabilities. As of January 31, 2024, there were $0.5 million restructuring-related liabilities.