Note 8 - Restructuring

12 Months Ended

Dec. 28, 2024

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note 8 - Restructuring

In September 2024, our management commenced an internal restructuring plan ("the Q3 2024 Plan"), which includes a global workforce reduction. Under this plan, we have incurred restructuring costs of approximately $7.6 million through December 28, 2024. The Q3 2024 plan is expected to be largely complete in the first half of fiscal year 2025.

In the third quarter of 2023, our management approved and executed an internal restructuring plan (the “Q3 2023 Plan”), which included a targeted workforce reduction intended to reorganize critical roles and focus skillsets in key growth markets. We incurred restructuring costs of approximately $5.3 million and $2.0 million, respectively, in fiscal 2024 and 2023. Under this plan, approximately $7.3 million of total costs have been incurred through December 28, 2024. All actions planned under the Q3 2023 plan have been implemented.

In September 2022, our management approved and implemented additional contract cancellations and workforce reductions under the Q2 2019 Sales Plan, an internal restructuring plan that our management approved and executed in April 2019. The Q2 2019 Sales Plan focused on a restructuring of the global sales organization through cancellation of certain contracts and a workforce reduction. Under the Q2 2019 Sales Plan, we recorded a credit adjustment of approximately $0.6 million in fiscal 2024, incurred no restructuring costs in fiscal 2023, and incurred approximately $1.0 million of incremental restructuring costs in fiscal 2022. Under this plan, approximately $2.5 million of total expense has been incurred through December 28, 2024. All actions planned under the Q2 2019 Sales Plan have been implemented.

Other restructuring activity in the periods presented consisted of expense adjustments on previous plans. Costs and adjustments on restructuring plans are recorded to Restructuring on our Consolidated Statements of Operations. The restructuring accrual balance is presented in Accrued liabilities and in Other long-term liabilities on our Consolidated Balance Sheets.

The following table displays the activity related to our restructuring plans:

(In thousands)	Severance & Related (1)			Lease Termination & Fixed Assets			Other (2)			Total
Accrued Restructuring at January 1, 2022	$	251		$	7,130		$	—		$	7,381
Restructuring		303			1,608			640			2,551
Costs paid or otherwise settled		(154	)		(2,846	)		—			(3,000	)
Accrued Restructuring at December 31, 2022	$	400		$	5,892		$	640		$	6,932
Restructuring		1,848			56			4			1,908
Costs paid or otherwise settled		(758	)		(1,440	)		(24	)		(2,222	)
Accrued Restructuring at December 30, 2023	$	1,490		$	4,508		$	620		$	6,618
Restructuring		12,896			15			(620	)		12,291
Costs paid or otherwise settled		(12,481	)		(1,559	)		—			(14,040	)
Accrued Restructuring at December 28, 2024	$	1,905		$	2,964		$	—		$	4,869

(1)	Includes employee relocation costs and outplacement costs
(2)	Includes termination fees on the cancellation of certain contracts