Restructuring Costs

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

On November 10, 2022, the Company committed to and commenced a cost reduction program to materially change the Company’s management structure and better align resources with our then-current business needs and going forward financial objectives. The cost reduction program included one-time termination benefits for 81 employees (approximately 15% of the Company’s workforce at the time of the reduction). The Company’s Board of Directors approved the program on November 9, 2022, and the majority of the affected employees were informed of the program beginning on November 10, 2022. The cost reduction program is expected to be substantially completed by the second quarter of 2023.

During the three months ended March 31, 2023, the Company recognized $0.2 million of restructuring costs. There were no restructuring costs for the three months ended March 31, 2022. Total costs and cash expenditures for the cost reduction program are estimated at $3.0 million to $3.3 million, substantially all of which are related to one-time employee severance and benefits costs. In addition, on April 11, 2023, the Company commenced an additional phase of our cost reduction program affecting approximately 140 employees as disclosed in Note 15 “Subsequent Events”. The Company may continue to incur additional restructuring costs during and beyond 2023 related to its cost reduction program. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the cost reduction program.

Restructuring liabilities are included in accrued expenses and other liabilities on the consolidated balance sheets. Activity related to the restructuring liabilities was as follows:


(In thousands)	March 31, 2023
Balance at beginning of period	$	772
Restructuring costs	229
Payments	(379)
Balance at end of period	$	622

The Company expects the majority of the restructuring accruals as of March 31, 2023 will be paid in 2023, pursuant to the terms of one-time benefits.