Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

2023 Restructuring

During the first quarter of 2023, we announced a workforce reduction plan (the "2023 Plan") intended to realign our investments to accelerate our growth strategy and further optimize our operations and cost structure. The 2023 Plan will result in reductions to our worldwide headcount of approximately 4% during 2023. In connection with the Plan, we incurred approximately $15.5 million of charges consisting primarily of cash termination benefits and other employee-related costs during the first quarter of 2023.

We expect to incur an additional $0.9 million of additional costs related to our restructuring plans during the remainder of 2023.

2022 and 2021 Restructuring

During the first quarter of 2023, we recognized approximately $0.4 million in severance-related charges for restructuring activities that were initiated in prior years. The majority of the charges related to the 2022 and 2021 Plans had been fully recognized as of March 31, 2023.

A summary of the charges in our consolidated statement of operations resulting from our restructuring activities is shown below:

	Three Months Ended March 31,
(In thousands)	(Unaudited)
	2023		2022
Cost of sales	$	1,520	$	—
Research and development	3,213		400
Sales and marketing	5,981		—
General and administrative	5,256		—
Total	$	15,970	$	400

A summary of balance sheet activity during 2023 related to the restructuring activity is shown below:

	Restructuring Liability
	(in thousands)
Balance as of December 31, 2022	$	10,009
Income statement expense	15,970
Cash payments	(14,570)
Balance as of March 31, 2023	$	11,409

The restructuring liability of $11.4 million at March 31, 2023, relating primarily to future severance payments is recorded in the “Accrued compensation” line item of the consolidated balance sheet.