v3.23.1
Subsequent Events
3 Months Ended
Apr. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS
On June 1, 2023, management approved a restructuring plan (the “Plan”) as a result of a review of current strategic priorities, resource allocation, and cost reduction intended to reduce operating costs, improve operating margins and continue advancing our ongoing commitment to profitable growth. The Plan includes a reduction of our current workforce by approximately 5%, or approximately 100, of our full-time employees. Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries, as well as our business needs.
We currently estimate that we will incur approximately $3.9 million to $6.7 million in charges in connection with the Plan, net of savings related to stock-based compensation expense described below. We currently estimate that of these expenses, cash expenditures will be approximately (i) $3.8 million to $6.9 million related to severance payments and employee benefits and (ii) $1.2 million to $1.5 million related to inventory write-offs. We are also expected to recognize savings related to a reversal on stock-based compensation expense of $1.1 million to $1.7 million. This portion of the Plan is expected to be substantially completed in the second quarter of fiscal 2024 and the expenses and savings will be recognized in such period. In addition, we expect certain exit charges associated with office space reductions in future periods, contingent on securing a sublease agreement. The execution of the remainder of the Plan is expected to be substantially complete by fiscal 2025.