Restructuring Charges

12 Months Ended

Jul. 31, 2022

Restructuring Charges [Abstract]

Restructuring Charges

NOTE 10. RESTRUCTURING CHARGES

In August 2022, we announced a plan to reduce our global headcount by approximately 270 employees, which represents approximately 4% of our total employees, following a review of our business structure and after taking other cost-cutting measures to reduce expenses. The headcount reduction is part of our ongoing efforts to drive towards profitable growth. We estimate that we will recognize pre-tax restructuring charges in the range of approximately $20.0 million to $25.0 million, consisting primarily of one-time severance and other termination benefit costs.

During fiscal 2022, we recognized restructuring charges of $11.2 million, which consisted primarily of severance and other termination benefit costs directly related to this reduction in force. Of the $11.2 million recognized, $0.2 million is included within support, entitlements and other services cost of revenue, $10.3 million is included within sales and marketing expense, $0.6 million is included within research and development expense, and $0.1 million is included within general and administrative expense on our consolidated statement of operations. We expect that the majority of the remaining charges will be recognized during the first quarter of fiscal 2023.

As of July 31, 2022, we had not made any cash payments related to this restructuring and the $11.2 million of restructuring charges accrued is included within accrued compensation and benefits in our consolidated balance sheet.