v3.26.1
Note 6 - Restructuring
 3 Months Ended
Apr. 30, 2026
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]

(6)    Restructuring

 

In connection with Skillsoft's activities with respect to the planned sale of its GK business, the implementation of our comprehensive resource reallocation plan, and our workplace flexibility policy, we continued to execute initiatives aimed at reducing costs and aligning our operating expenses with current economic conditions and our evolving operating model. These initiatives were intended to enhance operating efficiency, competitiveness, and overall profitability, and included workforce reductions and facility closures and consolidations. 

 

Our restructuring charges are presented separately in the accompanying unaudited condensed consolidated statements of operations. Our restructuring charges recognized during the three months ended April 30, 2026 were primarily associated with professional fees in connection with our sale efforts relating to the GK business, employee termination costs, and contract termination costs. Our restructuring charges, recognized during the three months ended April 30, 2025 were substantially all related to employee termination costs.

 

The restructuring charge liability activity consisted of the following for the period presented (in thousands):

 

  

Three Months Ended

 
  

April 30, 2026

 

Restructuring liability as of beginning-of-period

 $7,590 

Restructuring expense during-the-period

  1,341 

Cash paid during-the-period

  (3,784)

Restructuring liability as of end-of-period (1)

 $5,147 

 

(1)

As of April 30, 2026, $2.7 million of this amount was included in “accrued compensation”, $1.2 million of this amount was included in “accrued expenses and other current liabilities”, and $1.2 million of this amount was included in “other long-term liabilities” on the condensed consolidated balance sheets.

 

Management continues to implement planned restructuring actions with respect to the planned sale of its GK business. We will continue to evaluate our cost structure and operating model to align operating expenses with existing economic conditions, which could result in further restructuring actions.