Restructuring

6 Months Ended

Jul. 31, 2023

RESTRUCTURINGIn June 2023, we announced a restructuring plan (Plan) as a result of a review of current strategic priorities, resource allocation, and cost reduction intended to reduce operating costs, improve operating margins and continue

advancing our ongoing commitment to profitable growth. The Plan includes a reduction of our current workforce by approximately 5%, or approximately 100 full-time employees. We incurred approximately $4.9 million in charges in connection with the Plan in the three months ended July 31, 2023, which consists of $5.3 million in charges related to severance payments and employee benefits, $0.7 million related to inventory write-offs, offset partially by $1.1 million in savings related to the reversal on stock-based compensation expense. Note that the charges related to inventory write-offs are recognized as cost of sales and not restructuring operating expenses in our condensed consolidated financial statements of operations. The actions associated with the Plan are expected to be substantially complete by the end of fiscal 2024, subject to local law and consultation requirements, as well as our business needs.

The following table summarizes our restructuring liability that is included in accrued payroll and benefits on the condensed consolidated balance sheet related to the Plan (in thousands):


	Severance payments and employee benefits
Liability as of January 31, 2023	$	—
Charges	5,314
Payments	(4,454)
Non-cash items	—
Liability as of July 31, 2023	$	860