On May 9, 2023, the Company announced a plan to reduce expenses and re-align the organization’s structure by implementing a reduction in its current workforce impacting approximately 50 employees and 15 contractors, primarily in the Philippines. The headcount reduction is part of the Company's cost-saving initiatives to navigate challenges in the industry and to better position itself for future growth opportunities. The Company incurred $1.2 million of restructuring charges during the three months ended June 30, 2023.

The following table provides a summary of the restructuring costs incurred:


	Three and Six Months Ended
	June 30, 2023
	(in thousands)
Employee severance	$	520
Retention bonus settled		411
Contract termination costs		285
Total restructuring costs	$	1,216

As of June 30, 2023, the Company has a liability of $0.5 million for restructuring costs, of which $0.4 million is included in accrued expenses and other current liabilities and $0.1 million is included in other liabilities on the consolidated balance sheet.

The accounting for the restructuring costs follows the provisions of ASC 420, "Accounting for Costs Associated with Exit or Disposal Activities," which requires the recognition of a liability once the restructuring plan is communicated to affected employees and meets

the criteria of being probable and reasonably estimable. The Company recognizes a liability for employee severance, other benefits, and involuntary terminations on the communication date.

The Company will continue to assess the restructuring plan's progress and provide updates as required in future financial statements if there are material changes to the initial estimates or additional significant restructuring activities.