Restructuring and Other Exit Activities

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Other Exit Activities

Restructuring and Other Exit Activities

Q4 2024 Restructuring Plan

In the fourth quarter of 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 $33 million being incurred up to March 31, 2025. The activities under the Q4 2024 Restructuring Plan were substantially completed by December 31, 2024 and no further costs are expected under this plan subsequent to March 31, 2025.

Equinix Metal Wind Down

In the fourth quarter of 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 up to approximately $14 million, with $8 million of these costs incurred up to March 31, 2025. 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.

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 Condensed Consolidated Statements of Operations (in millions):

	Three Months Ended March 31, 2025
Nature of expense	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total (1)
Severance and other employee costs	$	3	$	2	$	5
Other exit costs	3		2		5
Total	$	6	$	4	$	10
	Total Costs Incurred to Date
Nature of expense	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total
Severance and other employee costs	$	22	$	6	$	28
Stock-based compensation expense	3		—		3
Other exit costs	8		2		10
Total	$	33	$	8	$	41

(1)Total restructuring charges were incurred in each of our three regions with $8 million in the Americas, $1 million in EMEA and $1 million in Asia-Pacific during the three months ended March 31, 2025.

The following table summarizes the activity in our restructuring accrual, included in other current liabilities in our Condensed Consolidated Balance Sheets (in millions):

	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total
Balance as of December 31, 2024	$	13	$	2	$	15
Charges	6		4		10
Cash payments	(13)		(2)		(15)
Balance as of March 31, 2025	$	6	$	4	$	10

We had no restructuring activity during the three months ended March 31, 2024.