Restructuring and Other Charges

9 Months Ended

Apr. 29, 2023

In the second quarter of fiscal 2023, we announced a restructuring plan (the “Fiscal 2023 Plan”), in order to rebalance the organization and enable further investment in key priority areas. This rebalancing includes talent movement options and restructuring. Additionally, we have begun optimizing our real estate portfolio, aligned to the broader hybrid work strategy. The total pretax charges are estimated to be approximately $600 million and is expected to impact approximately 5% of our global workforce. In connection with the Fiscal 2023 Plan, we incurred charges of $87 million and $330 million for the third quarter and first nine months of fiscal 2023, respectively. These aggregate pretax charges will be primarily cash-based and will consist of severance and other one-time termination benefits, real estate-related charges, and other costs. We expect the plan to be substantially completed by the end of the first quarter of fiscal 2024.

The following tables summarize the activities related to the restructuring and other charges (in millions):


	FISCAL 2021 AND PRIOR PLANS				FISCAL 2023 PLAN
	Employee Severance		Other		Employee Severance		Other		Total
Liability as of July 30, 2022	$	2	$	7	$	—	$	—	$	9
Charges	—		(2)		300		30		328
Cash payments	(1)		(1)		(263)		(7)		(272)
Non-cash items	—		—		1		(2)		(1)
Liability as of April 29, 2023	$	1	$	4	$	38	$	21	$	64


	FISCAL 2020 AND PRIOR PLANS				FISCAL 2021 PLAN
	Employee Severance		Other		Employee Severance		Other		Total
Liability as of July 31, 2021	$	—	$	10	$	16	$	8	$	34
Charges	—		(5)		10		3		8
Cash payments	—		(1)		(21)		(1)		(23)
Non-cash items	—		—		—		(5)		(5)
Liability as of April 30, 2022	$	—	$	4	$	5	$	5	$	14