Cost Reduction and Related Restructuring Activities

12 Months Ended

Jul. 31, 2025

Restructuring and Related Activities [Abstract]

Cost Reduction and Related Restructuring Activities

Cost Reduction and Related Restructuring Activities

In fiscal 2025, in connection with our transformation strategy, we implemented multiple reductions in force throughout our organization and in all of our segments. Inclusive of actions taken in August 2025 (i.e., the start of our fiscal 2026), such reductions approximated 23% of our workforce as of July 31, 2024, or approximately $47,000,000 in annualized labor costs. Related to these activities, in fiscal 2025, we recorded $3,633,000 of severance costs within selling, general and administrative expenses in our Consolidated Statements of Operations. After net payments of $3,900,000 during fiscal 2025, our severance liability as of July 31, 2024 decreased from $1,029,000 to $762,000 as of July 31, 2025. At July 31, 2025, we had approximately 1,385 employees (including contractors), compared to 1,676 as of July 31, 2024. As of the issuance date, we had approximately 1,347 employees (including temporary employees and contractors), which reflects the completion of a reduction in force within our Allerium segment in August 2025. We recorded severance costs of $2,616,000 and $3,872,000 during fiscal 2024 and 2023, respectively.