On January 8, 2017, the Company announced a reduction in headcount by approximately 30% in connection with the Asset Sale and the completion of its strategic pipeline review. Upon the closing of the Asset Sale and the completion of its strategic pipeline review, the Company had approximately 80 employees.

Under this corporate restructuring, the Company recognized total restructuring expenses of $9.5 million for the year ended December 31, 2017, which was related to contractual termination benefits for employees with pre-existing severance arrangements. These one-time employee termination benefits are comprised of severance, benefits and related costs, all of which are expected to result in cash expenditures. The majority of these payments were made during the second quarter of 2017. The remaining payments represent severance payments that were paid over one year and completed in 2018. The expense of $9.5 million was included as a component of income from discontinued operations, net of tax in the consolidated statements of operations and comprehensive loss, as the costs are directly associated with the Asset Sale.

On November 7, 2018, the Company announced that it was implementing a reduction in headcount as part of a corporate restructuring, after which the Company expected to have approximately 27 employees. The corporate restructuring followed a comprehensive review of the Company’s drug candidate pipeline.

Under this corporate restructuring, the Company recognized total restructuring expenses of $1.3 million for the year ended December 31, 2018 consisting of one-time employee termination benefits of $1.0 million recorded in research and development expense and $0.3 million recorded in general and administrative expense. These one-time employee termination benefits are comprised of severance, benefits and related costs, all of which are expected to result in cash expenditures. Approximately $0.4 million of these payments were made during the fourth quarter of 2018. The remainder will be paid over the first half of 2019.

The following table summarizes the charges related to the restructuring activities as of December 31, 2018 and 2017:

(in thousands)

Accrued

Restructuring

Expenses at

December 31,

2017

Expenses

Less: Payments

Accrued

Restructuring

Expenses at

December 31,

2018

Severance, benefits and related costs

due to workforce reduction

628

1,289

(996

)

921

Totals

628

1,289

(996

)

921


(in thousands)	Accrued Restructuring Expenses at December 31, 2016		Expenses		Less: Payments			Accrued Restructuring Expenses at December 31, 2017
Severance, benefits and related costs due to workforce reduction	$	774	$	9,521	$	(9,667	)	$	628
Totals	$	774	$	9,521	$	(9,667	)	$	628