New Relic to reduce workforce by up to 255 employees globally

New Relic disclosed in a regulatory filing that on June 23 the company committed to a restructuring plan to realign resources with its strategic priorities, as presented at the company’s analyst day on May 25. “The restructuring plan is the result of a thorough review, focused on realigning resources with the company’s business needs in driving the growth of its consumption business, completion of its transition to a consumption business model, and improving business efficiency. The plan contemplates a reduction of the company’s workforce by a total of up to 255 employees globally, inclusive of employees previously exited in May and early June as part of the reorganization of specific functions and performance management. In connection with the restructuring, the company plans to hire approximately half of the reduced headcount in targeted areas of the organization to address opportunities for consumption business growth going forward. The company currently expects to end fiscal year 2024 at approximately the same headcount as of the end of fiscal year 2023. The company expects to incur aggregate charges of approximately $18 M to $22M in connection with the restructuring plan, consisting primarily of employment termination and other one-time expenses. The company expects approximately 75% of these charges will be cash expenditures, and that it will recognize the majority of these restructuring costs in the first quarter of fiscal 2024. The actual timing and costs of the plan may differ from the Company’s current expectations and estimates,” the filing stated.