We have a company-wide effort underway to re-engineer our cost base. As part of this program, in January 2023, we announced a reduction of our workforce. As a result, total employee severance and related charges recorded during the year ended December 31, 2023 were $2.1 billion. Substantially all of the employees affected were no longer included in our headcount as of December 31, 2023.

In addition, we are taking actions to optimize our global office space. As a result, exit charges recorded during the year ended December 31, 2023, were $1.8 billion as reflected in the table below. In addition to these exit charges, for the year ended December 31, 2023, we incurred $269 million in accelerated rent and accelerated depreciation, which are not included in the table below.

Severance and office space exit charges are included within our consolidated statements of income as follows (in millions):


	Year Ended December 31, 2023
	Severance and Related (1)		Office Space		Total
Cost of revenues	$	479	$	481	$	960
Research and development	848		870		1,718
Sales and marketing	497		257		754
General and administrative	264		237		501
Total charges	$	2,088	$	1,845	$	3,933

(1)Severance includes amounts to be settled in cash, accounted for as one-time involuntary employee termination benefits, and SBC.

For segment reporting, the substantial majority of these charges are included within Alphabet-level activities in our segment results.

For the year ended December 31, 2023, changes in liabilities resulting from the severance charges and related accruals were as follows (in millions):


	Severance and Related
Balance as of December 31, 2022	$	0
Charges(1)	1,656
Cash payments	(1,579)
Balance as of December 31, 2023(2)	$	77

(2)Included in accrued compensation and benefits on the Consolidated Balance Sheets.