Restructuring and Other Costs |
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| Restructuring and Other Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Other Costs |
Note 6. Restructuring and Other Costs
Restructuring and other costs consist primarily of personnel-related restructuring expenses, including employee termination benefits and related costs.
Other costs relate to charges associated with the Chapter 11 Cases that were incurred prior to the filing date of the Chapter 11 Cases, primarily consisting of professional fees and other advisory costs associated with the evaluation and sale of
certain businesses and preparation for filing of the Chapter 11 Cases.
On May 3, 2024, the Company announced a restructuring and cost reduction plan (the “2024 Restructuring Plan”), which included reducing its
workforce by approximately 20% and sub-leasing certain facilities. On September 20, 2024, the Company announced additional actions under
the 2024 Restructuring Plan that represented a cumulative workforce reduction of approximately 30% of the Company’s full-time employees
since the beginning of 2024. These actions were substantially completed during the second quarter of 2025.
On May 15, 2025, the Company began executing additional restructuring efforts (the “May 2025 Restructuring Plan”), including a reduction in its workforce. The actions
associated with the May 2025 Restructuring Plan were substantially completed by the end of the third quarter of 2025.
On October 29, 2025, the Company committed to a plan to further reduce its workforce by approximately 25% in order to reduce operating costs (the “October 2025 Restructuring Plan”). The actions associated with the October 2025 Restructuring were substantially completed during the
fourth quarter of 2025.
On December 18, 2025, the Company committed to a plan to further reduce its workforce by approximately 30% in order to reduce operating costs (the “December 2025 Restructuring Plan”). The actions associated with the December 2025 Restructuring Plan were substantially completed
during the fourth quarter of 2025.
As of December 31, 2025, the workforce reduction actions described above resulted in the termination of 251 employees during the year ended December 31, 2025, and 204
employees during the year ended December 31, 2024. Total personnel-related costs associated with the restructuring plans amounted to $6.0
million for the year ended December 31, 2025. These costs are included within restructuring and other costs in the consolidated statements of operations. The following table summarizes the restructuring and other charges as of December 31, 2025 (in
thousands):
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