Restructuring Costs

9 Months Ended

Sep. 30, 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 go 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.

On April 11, 2023, the Company commenced an additional phase of its cost reduction program. In a continued effort to align the organization relative to core business needs and go forward financial objectives, this phase included a reduction in force affecting approximately 140 employees (representing approximately 30% of total employees prior to these actions). The Company’s Board of Directors approved the reduction in force on March 30, 2023 and the majority of the affected employees were informed on April 11, 2023. The cost reduction program was substantially complete as of September 30, 2023.

During the three and nine months ended September 30, 2023, the Company recognized de minimis and $3.6 million of restructuring costs. There were no restructuring costs for the nine months ended September 30, 2022. Total costs and cash expenditures for both phases of the cost reduction program are estimated at $6.3 million to $6.5 million, substantially all of which are related to one-time employee severance and benefits costs. 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 condensed consolidated balance sheets. Activity related to the restructuring liabilities was as follows:


(In thousands)	September 30, 2023		December 31, 2022
Balance at beginning of period	$	772	$	—
Restructuring costs	3,624		2,628
Payments	(4,079)		(1,856)
Balance at end of period	$	317	$	772

The Company expects the restructuring accruals as of September 30, 2023 will be paid in 2023, pursuant to the terms of one-time benefits.