A description of the Company's restructuring and other activities and their related costs is provided below.

In February 2023, the Company committed to a restructuring plan (the "February 2023 Restructuring Plan") that is designed to improve operating margin. The February 2023 Restructuring plan resulted in a reduction of the Company's workforce by approximately 14%. The total estimated restructuring costs was approximately $7.2 million, consisting of cash expenditures for employee severance, employee benefits, and related facilitation costs, and was substantially recognized during the first quarter of 2023.

In October 2022, the Company committed to a plan designed to improve operating margin and create efficiencies in its go-to-market motion and in other areas throughout the Company (the “October 2022 Restructuring Plan”). The October 2022 Restructuring Plan resulted in a reduction of the Company’s workforce by approximately 11%. The Company incurred total charges of approximately $4.2 million, consisting of cash expenditures for employee

severance, employee benefits, and related facilitation costs, and was substantially recognized during the fourth quarter of 2022.

In March 2022, the Company implemented a restructuring plan (the “March 2022 Restructuring Plan”) to streamline its business, increase operating efficiency, and reduce costs over the long-term after the termination of its proposed merger with Zendesk. In connection with the March 2022 Restructuring Plan, the Company incurred total charges of approximately $2.4 million, which are primarily comprised of employee severance, stock-based compensation expense, gain on lease modification due to the partial termination of its San Mateo, CA headquarters lease and related leasehold improvement impairment costs, and other contract termination costs related to the Company's decision to abandon its future office expansion plans. Additionally, the Company has streamlined its brand positioning and accelerated the amortization of the brand-related intangibles that were discontinued. Substantially all of the costs related to the March 2022 Restructuring Plan has been recognized as of the fourth quarter of 2022.

The restructuring plans were subject to applicable laws and consultation processes as part of the Company's strategic plan to reduce costs and improve efficiencies. In connection with these actions, the Company incurred the following pre-tax costs for the three months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
(in thousands)	2023		2022
Employee severance	$	7,197	$	822
Stock-based compensation		—		2,761
Contract termination and other costs		—		1,255
Amortization of intangible assets		—		45
Total restructuring costs	$	7,197	$	4,883

Restructuring costs included $2.0 million recorded in accrued expenses and other current liabilities line in the condensed consolidated balance sheet as of March 31, 2023. The majority of the amounts accrued pertain to severance costs which will be paid through the second quarter of 2023.