Elastic NV

16. Restructuring and Other Related Charges

During the three months ended April 30, 2024, the Company initiated a plan to realign business and strategic priorities which resulted in a reduction of the Company’s workforce. In connection with this plan, the Company incurred charges of $4.2 million primarily consisting of employee-related severance and termination benefits during the year ended April 30, 2024. The execution of this plan is expected to be substantially completed during the first quarter of fiscal 2025.

The following table presents activity related to the liability, which is recorded in accrued compensation and employee benefits in the consolidated balance sheet, for restructuring-related employee severance and benefits for the year ended April 30, 2024 (in thousands):

On November 30, 2022, the Company announced and began implementing a plan to align its investments more closely with its strategic priorities by reducing the Company’s workforce by approximately 13% and implementing certain facilities-related cost optimization actions. In connection with this restructuring plan, the Company recorded employee-related severance and other termination benefits of $0.8 million and $23.3 million during the years ended April 30, 2024 and 2023, respectively. The Company also recorded facilities-related charges of $6.2 million during the year ended April 30, 2023. The facilities-related charges included impairment of operating lease right-of-use assets and the associated furniture, equipment, and leasehold improvements of $5.1 million and $1.1 million, respectively, for the exited leased office spaces. The execution of this restructuring plan was completed during the first quarter of fiscal 2024.