Restructuring Costs

6 Months Ended

Jun. 28, 2025

In the fourth quarter of 2023, the Company initiated cost reduction actions to reduce operating expenses and accelerate

gross margin initiatives, and recognized $33.8 million of restructuring costs through December 28, 2024. The Company

has incurred an additional $8.4 million and of restructuring costs during the six months ended June 28, 2025. Charges

incurred related to this initiative were comprised of contract termination costs, severance and employee-related benefits,

professional fees and other, and asset impairment charges and are included in the restructuring costs line in the

Company’s condensed consolidated statement of operations. The Company expects approximately $8 million of

additional restructuring costs to be incurred through the remainder of 2025, primarily due to severance and employee-

related benefits, contract termination costs, and asset impairment charges.

The following table provides a summary of the Company’s restructuring costs during the three and six months ended

June 28, 2025 and June 29, 2024 (in thousands):


	Three Months Ended		Six Months Ended
	June 28, 2025	June 29, 2024	June 28, 2025	June 29, 2024
Cash restructuring costs:
Contract termination costs (1)	$1,409	$(230)	$1,295	$4,183
Severance and employee-related benefits	6,335	401	6,492	1,242
Professional fees and other	—	1,648	17	4,494
Total cash restructuring costs	7,744	1,819	7,804	9,919
Non-cash restructuring costs:
Asset impairments (2)	588	—	588	2,500
Total restructuring costs	$8,332	$1,819	$8,392	$12,419

____________________

(1) Primarily comprised of lease termination costs and includes changes in estimate.

(2) Primarily comprised of impairments of property and equipment.

The following table provides the activity in the Company’s restructuring related liabilities, which are included within

accounts payable, compensation and benefits and other current liabilities on the condensed consolidated balance sheet

(in thousands):


	June 28, 2025	December 28, 2024
Balance at the beginning of year	$3,341	$8,720
Expenses	7,804	14,888
Cash payments	(7,973)	(20,267)
Balance at the end of the period	$3,172	$3,341

Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative

$42.2 million of restructuring costs, as follows (in thousands):


		Cumulative
		June 28, 2025
Cash restructuring costs:
Contract termination costs (1)		$15,732
Severance and employee-related benefits		14,685
Professional fees and other		5,761
Total cash restructuring costs		36,178
Non-cash restructuring costs:
Asset impairments (2)		6,008
Total restructuring costs		$42,186

____________________

(1)Primarily comprised of lease termination costs.

(2) Includes impairments of both lease right-of-use assets and property and equipment.