Note 18. Restructuring

In 2023, the Company announced and initiated two corporate cost reductions plans, the first in August 2023 and the second in November 2023, to better align Cambium's cost structure with current economic conditions and position the Company to achieve near-term and long-term targets to maintain profitability, improve cash flow and maintain a strong balance sheet.

Under the August 2023 restructuring plan, the Company expected and incurred $1.0 million of costs in the three-month period ended September 30, 2023. These costs were all paid by December 31, 2023, and the restructuring plan was completed.

Under the November 2023 restructuring plan, the Company expected to incur between $1.5 - $2.5 million of costs, consisting mostly of one-time involuntary employee termination costs. Cost reductions under the November 2023 plan began in the fourth quarter of 2023 and were completed during 2024, and all costs have been incurred by the end of 2024. For the year ended December 31, 2023, the Company incurred $1.2 million of costs, of which $0.8 million was paid by December 31, 2023. As of December 31, 2023, the Company had a restructuring liability of $0.4 million which was included in Accrued liabilities on the Company's consolidated balance sheet.

During the year ended December 31, 2024, the Company incurred additional restructuring charges under the November 2023 plan of approximately $1.1 million, which are included in cost of revenues and all operating expense lines in the Company's consolidated statements of operations. Through December 31, 2024, the Company paid $1.4 million, which consists of the $0.4 million outstanding at December 31, 2023 plus an additional $1.1 million of costs incurred during the year ended December 31, 2024. As of December 31, 2024, the Company has a restructuring liability of $0.1 million, which is included in Accrued liabilities in the Company's consolidated balance sheet and was paid in the first quarter of 2025.