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 $50.7 million of restructuring costs in 2025. Charges incurred related to this initiative are

primarily comprised of contract termination costs, severance and employee-related benefits, professional fees, right-of-

use asset and property and equipment impairment charges and are included in the restructuring costs line in the

Company’s consolidated statement of operations. The Company expects approximately $13 million of additional

restructuring costs to be incurred during 2026, primarily due to lease and other contract termination costs and asset

During the years ended January 3, 2026 and December 28, 2024, the Company recognized $50.7 million and

$18.1 million respectively, of restructuring costs, as follows (in thousands):


	2025	2024
Cash restructuring costs:
Contract termination costs(1)	$8,408	$7,027
Severance and employee-related benefits	9,529	3,227
Professional fees and other	1,817	4,634
Total cash restructuring costs	19,754	14,888
Non-cash restructuring costs:
Asset impairments(2)	30,943	3,178
Total restructuring costs	$50,697	$18,066

(1)Primarily comprised of strategic-development partner termination costs and lease termination costs.

(2) Primarily comprised of impairments of strategic-development partner long-lived assets, lease right-of-use assets and 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 consolidated balance sheet (in

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

$84.5 million of restructuring costs, as follows (in thousands):


				Cumulative
				January 3, 2026
Cash restructuring costs:
Contract termination costs (1)				$22,845
Severance and employee-related benefits				17,722
Professional fees and other				7,561
Total cash restructuring costs				48,128
Non-cash restructuring costs:
Asset impairments (2)				36,363
Total restructuring costs				$84,491

(1)Primarily comprised of strategic-development partner termination costs and lease termination costs.

(2) Primarily comprised of impairments of strategic-development partner long-lived assets, lease right-of-use assets and property and equipment.