Restructuring Costs

12 Months Ended

Dec. 28, 2024

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In the fourth quarter of 2023, the Company initiated cost reduction actions to reduce operating expenses and accelerate

gross margin initiatives and recognized $15.7 million of restructuring costs in that quarter. In addition to the costs

incurred in 2023, the Company incurred an additional $18.1 million of restructuring costs in 2024. Charges incurred

related to this initiative were comprised of contract termination costs, severance and employee-related benefits,

professional fees and other, and asset impairment charges and are included in the restructuring costs line in the

Company’s consolidated statement of operations. The Company expects approximately $5 million to $7 million of

additional restructuring costs to be incurred during 2025, primarily due to lease contract termination costs.

During the years ended December 28, 2024 and December 30, 2023, the Company recognized $18.1 million and

$15.7 million, respectively, of restructuring costs, as follows (in thousands):

	2024	2023
Cash restructuring costs:
Contract termination costs(1)	$7,027	$7,410
Severance and employee-related benefits	3,227	4,966
Professional fees and other	4,634	1,110
Total cash restructuring costs	14,888	13,486
Non-cash restructuring costs:
Asset impairments(2)	3,178	2,242
Total restructuring costs	$18,066	$15,728

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(1)Primarily comprised of lease termination costs.

(2) Includes impairments of both lease right-of-use assets and property and equipment.

The following table provides the activity in the Company’s restructuring related liabilities, which are included within

accounts payable, compensation and benefits and other current liabilities on the consolidated balance sheet (in

thousands):

	2024	2023
Balance at December 30, 2023	$8,720	$—
Expenses	14,888	13,486
Cash payments	(20,267)	(4,766)
Balance at December 28, 2024	$3,341	$8,720

Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative

$33.8 million of restructuring costs, as follows (in thousands):

	Cumulative
	December 28, 2024
Cash restructuring costs:
Contract termination costs (1)	$14,437
Severance and employee-related benefits	8,193
Professional fees and other	5,744
Total cash restructuring costs	28,374
Non-cash restructuring costs:
Asset impairments (2)	5,420
Total restructuring costs	$33,794

____________________

(1)Primarily comprised of lease termination costs.

(2) Includes impairments of both lease right-of-use assets and property and equipment.