Restructuring Costs

3 Months Ended

Mar. 29, 2025

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 $33.8 million of restructuring costs through December 28, 2024. The Company

has incurred an additional $0.1 million of restructuring costs during the three months ended March 29, 2025. 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 condensed consolidated statement of operations. The Company expects an additional $10 million to

$15 million of restructuring costs to be incurred through the remainder of 2025, primarily due to severance and

employee-related benefits, contract termination costs, and asset impairment charges.

The following table provides a summary of the Company’s restructuring costs during the three months ended March 29,

2025 and March 30, 2024 (in thousands):

	Three Months Ended
	March 29, 2025	March 30, 2024
Cash restructuring costs:
Contract termination costs (1)	$(114)	$4,413
Severance and employee-related benefits	157	841
Professional fees and other	17	2,846
Total cash restructuring costs	60	8,100
Non-cash restructuring costs:
Asset impairments (2)	—	2,500
Total restructuring costs	$60	$10,600

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(1) Primarily comprised of lease termination costs. Costs incurred during the three months ended March 29, 2025 were favorable to original estimates.

(2) Primarily comprised of impairments of 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 condensed consolidated balance sheet

(in thousands):

	March 29, 2025	December 28, 2024
Balance at the beginning of year	$3,341	$8,720
Expenses	60	14,888
Cash payments	(2,914)	(20,267)
Balance at the end of the period	$487	$3,341

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

$33.9 million of restructuring costs, as follows (in thousands):

	Cumulative
	March 29, 2025
Cash restructuring costs:
Contract termination costs (1)	$14,323
Severance and employee-related benefits	8,350
Professional fees and other	5,761
Total cash restructuring costs	28,434
Non-cash restructuring costs:
Asset impairments (2)	5,420
Total restructuring costs	$33,854

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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.