Restructuring Expenses

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring Expenses

Restructuring Expenses

During the first quarter of 2022, the Company initiated certain domestic and international restructuring initiatives, in order to enhance and streamline certain engineering functions for its domestic operations, and to realign its international sales organization to better serve its customers in various international markets. During the three months ended March 31, 2022, the Company incurred $3.5 million of employee severance costs and related expenses in connection with this restructuring plan. As of March 31, 2023, there was no material unpaid balance related to this restructuring plan.

On November 23, 2022, the Company committed to a plan to reduce the Company’s headcount (the “Plan”), as part of the Company’s expense containment efforts being implemented due to ongoing macroeconomic headwinds. During the first quarter of 2023, as a result of continued exploration of expense containment measures, the Company committed to further reduce its headcount across many of its functions, and also committed to reduce its real estate footprint to align with its broader hybrid work strategy and in an effort to further reduce costs. During the three months ended March 31, 2023, the Company incurred $5.3 million of employee severance costs and related expenses in connection with the Plan. As of March 31, 2023, the Company has incurred $22.8 million of cumulative restructuring expense related to employee severance costs and related expenses since the inception of the Plan. As of March 31, 2023 and December 31, 2022, the unpaid balance related to the Plan was $8.1 million and $18.2 million, respectively.

Refer to Note 12, Lessee Leases, for information regarding the Company’s restructuring activities for the reduction of its real estate footprint and optimization of certain leased facilities.

The following table summarizes the total employee-related restructuring expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Cost of product and service revenues	$	144	$	156
Research and development	485		1,594
Selling, general, and administrative	4,685		1,777
Total restructuring expense	$	5,314	$	3,527