Over the last 21 years, AvePoint has grown and evolved to meet the needs of our customers. As we close 2022 and look ahead to 2023, we are evolving once again and evaluating every area of our business to ensure we remain focused on sustainable growth. This is especially important given the current macroeconomic environment, the shifting market expectation for companies in our market segment to focus on efficiency and the need to responsibly plan for a wider range of outcomes in the near-term. It is important that we control the controllable, and take the steps necessary to become a leaner, more efficient organization.
As a result, we have made the difficult decision to adjust our workforce to align to that strategy. While certain teams and regions will be more affected than others, taken together, these steps will impact approximately 5 percent of our workforce worldwide.
We estimate that we will incur approximately $3 million in restructuring expenses in the fourth quarter, primarily related to severance and compensation benefits. Despite these incremental costs, our fourth quarter revenue expectations remain unchanged.
We assessed how each team fit into our strategy and determined the optimal size and shape of those groups going forward. We then did a comprehensive review of every team member and made decisions based on how well those skills matched our future business needs.
The result is we are parting with colleagues who have made valuable contributions to AvePoint. To those leaving, thank you for the qualities and talents you shared with us.
All departing colleagues will receive support including severance, transitional benefits and if desired, resume review assistance from our Talent Team. The details will vary in every country in accordance with local employment laws.
Going forward, we continue to see high demand for our software to help companies collaborate with confidence in the modern workplace. We will invest in the areas of our business that drive growth, optimize our go-to-market model to support the significant opportunities in the channel and SMB segments, and be clear about how we prioritize our efforts in 2023 to meet the needs of our customers and partners.
We have always taken pride in our ability to be agile and persevere through the many phases of growth we’ve experienced since 2001. We’re confident that this next phase will be no different.
