|6 Months Ended|
Jun. 30, 2022
24. RESTRUCTURING CHARGES
On June 10, 2022, the Board of Directors approved a strategic integration and cost optimization initiative that includes a global workforce reduction of approximately 12%, facilities consolidation, and other operational savings measures (the “Initiative”). The purpose of the Initiative is to streamline the Company’s operational structure, reducing its operating expenses and managing its cash flows. The Company has commenced workforce reductions in the United States and is reviewing workforce changes in other countries, the timing of which will vary according to local regulatory requirements. The Company is also conducting a facility rationalization assessment and assessing other operational savings measures. The Company anticipates that the Initiative will be substantially complete by the end of 2023.
During the three and six months ended June 30, 2022, the Company recorded the following activity (in thousands):
During the three and six months ended June 30, 2022, the Company recorded restructuring charges of $9.7 million, as follows (in thousands):
(1) Includes $7.3 million of stock-based compensation expense incurred in connection with the Initiative.
(2) Lease termination costs associated with the Initiative have yet to be determined, pending completion of the facility rationalization assessment. Other costs related to operational savings measures associated with the Initiative have yet to be determined.
As of June 30, 2022, the Company accrued $2.4 million of restructuring charges, which is recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet.
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef