v3.26.1
Restructuring Expenses and Operating Model Optimization Initiatives
 6 Months Ended
Jun. 28, 2026
Restructuring and Related Activities [Abstract]  
Restructuring Expenses and Operating Model Optimization Initiatives Restructuring Expenses and Operating Model Optimization Initiatives
2024 Multi-Year Restructuring Initiative

As part of the Company’s continued transformation to a fit-for-purpose consumer company, during the fiscal year 2024, the Company began strategic initiatives intended to enhance organizational efficiencies and better position Kenvue for future growth (“Our Vue Forward”). To further Our Vue Forward, on May 6, 2024, the Company’s Board of Directors (the “Board”) approved a multi-year initiative (the “2024 Multi-Year Restructuring Initiative”) to build on the Company’s strengths, improve underlying information technology infrastructure, and optimize its cost structure by rebalancing resources to better position the Company for future growth. The 2024 Multi-Year Restructuring Initiative primarily included global workforce reductions, changes in management structure, and the transition to centralized shared-service functions in lower-cost locations.

As of the end of fiscal year 2025, the Company completed all actions under the 2024 Multi-Year Restructuring Initiative, and no additional costs will be incurred. The 2024 Multi-Year Restructuring Initiative resulted in pre-tax restructuring expenses and other charges totaling $556 million through the fiscal twelve months ended December 28, 2025. The Company will continue to make cash payments for restructuring expenses and other charges already incurred, with the majority of these payments anticipated to occur by the end of fiscal year 2026. These payments have been, and are expected to continue to be, funded primarily through cash flows generated from operations.

The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2024 Multi-Year Restructuring Initiative during the fiscal three and six months ended June 29, 2025:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)
June 29, 2025June 29, 2025
Restructuring expenses$60 $120 
Cost of sales6 12 
Selling, general, and administrative expenses2 3 
Total pre-tax restructuring expenses and other charges$68 $135 

2026 Restructuring Initiative

On February 17, 2026, the Company’s Board approved an initiative (the “2026 Restructuring Initiative”) that aims to optimize its operating model, transform its supply chain, reduce complexity, and drive operational efficiencies, while strengthening core capabilities. The initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately
$250 million in fiscal year 2026, consisting of information technology and project-related costs (approximately 59%), employee-related costs (approximately 35%), and other implementation costs (approximately 6%). These charges are expected to be funded primarily through cash flows generated from operations.

The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2026 Restructuring Initiative during the fiscal three and six months ended June 28, 2026:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)June 28, 2026June 28, 2026
Restructuring expenses$59 $130 
Cost of sales9 14 
Selling, general, and administrative expenses1 3 
Total pre-tax restructuring expenses and other charges$69 $147 

The following table summarizes the pre-tax restructuring expenses and other charges incurred by cost type related to the 2026 Restructuring Initiative during the fiscal three and six months ended June 28, 2026, which also represents inception-to-date through June 28, 2026:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)June 28, 2026June 28, 2026
Employee-related costs(1)
$29 $77 
Information technology and project-related costs(2)
40 70 
Total pre-tax restructuring expenses and other charges
$69 $147 
(1) Employee-related costs primarily include severance and other termination benefits.
(2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative.

The following table summarizes the activity related to accrued restructuring expenses and other charges for the 2026 Restructuring Initiative during the fiscal six months ended June 28, 2026:

(Dollars in Millions)
Employee-Related Costs(1)
Information Technology and Project-Related Costs(2)
Total Accrued Costs
December 28, 2025$— $— $— 
Charges to earnings77 70 147 
Cash payments(43)(43)(86)
Non-cash charges— (2)(2)
June 28, 2026$34 $25 $59 
(1) Employee-related costs primarily include severance and other termination benefits.
(2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative.