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Restructuring Expenses
 9 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Expenses Restructuring Expenses
On November 23, 2022, the Company committed to a plan to reduce the Company’s headcount (the “2022 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 September 30, 2023, the Company recorded an immaterial reversal of previously recognized restructuring expenses associated with the 2022 Plan. During the nine months ended September 30, 2023, the Company incurred $5.5 million of employee severance costs and related expenses, net of reversals, in connection with the 2022 Plan. As of September 30, 2024, there was no unpaid balance related to the 2022 Plan.
On November 2, 2023, the Company committed to a plan to reduce the Company’s headcount and real estate footprint (the “2023 Plan”) as part of the Company’s expense containment initiatives and other actions to reduce discretionary spending being implemented due to challenging industry dynamics and macroeconomic conditions. The Company did not incur any material expenses related to the 2023 Plan during both the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, the unpaid balance related to the 2023 Plan was $0.8 million and $8.9 million, respectively.
On April 26, 2024, the Company’s management committed to the wind down of the Company’s Medimat Robotic Dispensing System (“RDS”) product line, subject to local law and statutory works council consultation requirements. During the three and nine months ended September 30, 2024, the Company incurred approximately $0.6 million and $4.1 million, respectively, of employee severance costs and other expenses related to the RDS product line wind down, net of immaterial reversals of previously recognized restructuring expenses, the majority of which were unpaid as of September 30, 2024. In addition, during the nine months ended September 30, 2024, the Company incurred $5.4 million of inventory write-down charges related to the RDS product line wind down that were recorded to cost of revenues in the Company’s Condensed Consolidated Statements of Operations.
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, net of reversals, recognized in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Cost of product and service revenues$642 $(280)$3,338 $102 
Research and development(15)(25)296 467 
Selling, general, and administrative(7)(276)149 4,885 
Total restructuring expense$620 $(581)$3,783 $5,454