Restructuring Charges, Net

12 Months Ended

Apr. 30, 2023

Restructuring and Related Activities [Abstract]

In light of the Company’s evolution to an organization that is selling larger integrated solutions in a world where there are shifts in global trade lanes and persistent inflationary pressures, on January 11, 2023, the Company initiated a plan (the “Plan”) intended to realign its workforce with its business needs and objectives, namely, to invest in areas of potential growth and implement reductions where there is excess capacity. Due to the implementation of the Plan, the Company recorded restructuring charges of $42.6 million during fiscal 2023 across all lines of business related to severance for positions that were eliminated. There were no restructuring charges in fiscal 2022.

In the fourth quarter of fiscal 2020, in light of the uncertainty in worldwide economic conditions caused by the coronavirus pandemic and, as part of a broader program aimed at further enhancing Korn Ferry’s strong balance sheet and liquidity position, the Company adopted a restructuring plan intended to adjust its cost base to the then-current economic environment and to position the Company to invest in its recovery. The Company continued the implementation of this restructuring plan in the first quarter of fiscal 2021 and this resulted in restructuring charges, net of $30.7 million during fiscal 2021 across all lines of business relating to severance for positions that were eliminated.

Changes in the restructuring liability were as follows:


	Restructuring Liability
	(in thousands)
As of May 1, 2020	$	34,153
Restructuring charges, net	30,732
Reductions for cash payments	(56,387)
Non-cash payments	(3,968)
Exchange rate fluctuations	2,455
As of April 30, 2021	6,985

Reductions for cash payments	(4,829)

Exchange rate fluctuations	(654)
As of April 30, 2022	1,502
Restructuring charges, net	42,573
Reductions for cash payments	(24,485)
Non-cash payments	(10,827)
Exchange rate fluctuations	(759)
As of April 30, 2023	$	8,004

As of April 30, 2023 and 2022, the restructuring liability is included in the current portion of other accrued liabilities on the consolidated balance sheets, except for $0.5 million as of April 30, 2022, which was included in other long-term liabilities.

Restructuring charges incurred by segment were as follows:


	Year Ended April 30
	2023		2022		2021

	(in thousands)
Consulting	$	11,613	$	—	$	14,223
Digital	2,856		—		2,947
Executive Search:
North America	4,515		—		958
EMEA	12,732		—		8,868
Asia Pacific	2,129		—		181
Latin America	697		—		405
Professional Search & Interim	4,835		—		1,543
RPO	3,097		—		1,607
Corporate	99		—		—
Consolidated	$	42,573	$	—	$	30,732