Restructuring and Other Charges

12 Months Ended

Jul. 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, of which approximately 5% of the global workforce would be impacted. The total pretax charges are estimated to be approximately $700 million. This rebalancing includes talent movement options and restructuring. Additionally, we have begun optimizing our real estate portfolio, aligned to the broader hybrid work strategy. In connection with the Fiscal 2023 Plan, we incurred charges of $535 million in fiscal 2023. 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.

We initiated a restructuring plan in fiscal 2021 (the “Fiscal 2021 Plan”), which was completed in fiscal 2022. In connection with the Fiscal 2021 Plan, we incurred cumulative charges of $892 million. The aggregate pretax charges related to this plan were primarily cash-based and consist of severance and other one-time termination benefits, and other costs.

The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions):


	FISCAL 2023 PLAN				FISCAL 2021 AND PRIOR PLANS
	Employee Severance		Other		Employee Severance		Other		Total
Liability as of July 25, 2020	$	—	$	—	$	58	$	14	$	72
Charges	—		—		836		50		886
Cash payments	—		—		(879)		(11)		(890)
Non-cash items	—		—		1		(35)		(34)
Liability as of July 31, 2021	—		—		16		18		34
Charges	—		—		9		(3)		6
Cash payments	—		—		(23)		(2)		(25)
Non-cash items	—		—		—		(6)		(6)
Liability as of July 30, 2022	—		—		2		7		9
Charges	465		70		—		(4)		531
Cash payments	(301)		(11)		(1)		(1)		(314)
Non-cash items	2		(15)		—		—		(13)
Liability as of July 29, 2023	$	166	$	44	$	1	$	2	$	213