Restructuring plan (the "Plan") to align the Company’s organizational structure with its strategic focus on the AI Work Platform. The Plan reflects the Company's ongoing transformation of its product, marketing, and go-to-market strategy and is intended to support a leaner, more focused operating model as the Company continues to invest in its AI-driven growth strategy.
The Plan includes a reduction of approximately 20% of the Company's current workforce. The Company expects to continue hiring in key strategic areas throughout 2026.
In connection with the Plan, the Company estimates that it will incur approximately $45 - $55 million in net charges, consisting of approximately $30 - $35 million of future net charges related to severance payments, employee benefits, and related costs and approximately $30 - $35 million in charges related to the impairment of certain office space, partially offset by approximately $15 million in non-cash credits for share-based compensation. The majority of these charges are expected to be recognized in, and the Plan substantially completed by, the second half of 2026.
The Company expects its full-year 2026 financial results to be in-line with or above its guidance as provided on its fiscal 2026 first quarter earnings call