Restructuring and Other Exit Activities

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Other Exit Activities

Restructuring and Other Exit Activities

Q4 2024 Restructuring Plan

In November 2024, we initiated a restructuring plan to realign the organization and enable further investment in key priority areas (the "Q4 2024 Restructuring Plan"), resulting in costs of $27 million being incurred during the year ended December 31, 2024. The activities under the Q4 2024 Restructuring Plan were substantially completed by December 31, 2024.

Equinix Metal Wind Down

In November 2024, we announced the decision to make Equinix Metal no longer commercially available as a product and to wind down operations that support this product by June 2026 (the "Equinix Metal Wind Down"). As a result of the Equinix Metal Wind Down, we expect to incur costs of approximately $10 million to $14 million, with $4 million of these costs incurred during the year ended December 31, 2024. We expect substantially all costs under this plan to be incurred and paid by the end of the fourth quarter of 2026. The actual amounts and timing of incremental costs and cash payments may differ from these estimates should we make further decisions which impact the execution of these activities. In addition, we recorded an impairment charge of $160 million associated with the Equinix Metal Wind Down during the year ended December 31, 2024, as described in Note 17.

The following table summarizes costs incurred under the Q4 2024 Restructuring Plan and the Equinix Metal Wind Down, which are included in restructuring charges in our Consolidated Statements of Operations, during the year ended December 31, 2024 (in millions):

Nature of expense	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total (1)
Severance and other employee costs	$	19	$	4	$	23
Stock-based compensation expense	3		—		3
Other exit costs	5		—		5
Total	$	27	$	4	$	31

(1)Total restructuring charges were incurred in each of our three regions with $21 million in the Americas, $6 million in EMEA and $4 million in Asia-Pacific.

The following table summarizes the activity in our restructuring accrual, included in other current liabilities in our Consolidated Balance Sheets, for the year ended December 31, 2024 (in millions):

	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total
Beginning balance	$	—	$	—	$	—
Charges (1)	24		4		28
Cash payments	(11)		(2)		(13)
Ending balance	$	13	$	2	$	15

(1)Excludes stock-based compensation expense which represents non-cash transactions.

We had no restructuring activity during the years ended December 31, 2023 and 2022.