Restructuring Activities

3 Months Ended

Apr. 30, 2023

Restructuring and Related Activities [Abstract]

On February 7, 2023, we announced a restructuring plan (the “Plan”) intended to reduce operating costs and continue advancing our ongoing commitment to profitable growth. The Plan includes a reduction of our current workforce by approximately 15%.

For the three months ended April 30, 2023, we recorded restructuring expenses of $73.2 million, which consisted of $54.8 million related to employee transition, severance payments, and employee benefits; $17.3 million related to stock-based compensation awards; and $1.1 million for other related expenses. The execution of the Plan was substantially completed as of April 30, 2023; however, potential employment position eliminations in certain jurisdictions outside of the United States are subject to extended consultation periods mandated by the local jurisdictions. The estimated remaining expenses are not expected to be material.

The following table summarizes our restructuring expenses that were recorded as an operating expense in the condensed consolidated statement of operations for the three months ended April 30, 2023:


	(in thousands)
Cost of revenue	$	7,095
Research and development	19,302
Sales and marketing	33,841
General and administrative	12,942
Total restructuring expenses	$	73,180

The following table summarizes our restructuring liability that is included in accrued expenses and other current liabilities on the condensed consolidated balance sheet:


	Severance and termination benefits		Other
	(in thousands)
Balance as of January 31, 2023	$	—	$	—
Restructuring expenses	54,809		1,078
Cash payments	(50,354)		(811)
Balance as of April 30, 2023	$	4,455	$	267