RESTRUCTURING

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

On March 28, 2023, the Company announced a restructuring plan (the “Restructuring Plan”) intended to reduce operating expenses in response to evolving business needs and productivity improvement through a reduction in workforce. The Company expects to substantially complete the Restructuring Plan by the end of the second quarter of 2023, subject to local law and consultation requirements. As a result of the Restructuring Plan, the Company expects to record total restructuring charges of approximately $24 million, primarily related to severance payments, employee benefits, employee transition and stock-based compensation.

During the three months ended March 31, 2023, the Company recorded charges of $22.5 million related to severance payments, employee benefits and stock-based compensation, net of a reversal of previously recognized stock-based compensation expense. These charges were recorded within restructuring charges on the condensed consolidated statements of operations and comprehensive loss.

A summary of restructuring liabilities associated with the Restructuring Plan was as follows (in thousands):


	Three Months Ended March 31, 2023
Restructuring liabilities - beginning of period	$	—
Restructuring charges excluding non-cash items(1)	23,939
Restructuring liabilities - end of period	$	23,939

(1) Excluded non-cash items of $1.4 million, which was net of accelerated stock-based compensation expense of $3.4 million and a reversal of $4.8 million related to previously recognized stock-based compensation expenses for unvested restricted stock awards.

As of March 31, 2023, the restructuring liabilities of $23.9 million associated with the Restructuring Plan were included in accrued compensation on the condensed consolidated balance sheet. No payments were made during the three months ended March 31, 2023.