Restructuring and Other Charges

9 Months Ended

Apr. 27, 2024

In the third quarter of fiscal 2024, we initiated a restructuring plan (the “Fiscal 2024 Plan”) in order to realign the organization and enable further investment in key priority areas. The Fiscal 2024 Plan will impact approximately 5% of our global workforce, with estimated pretax charges of up to approximately $800 million. These aggregate pretax charges will be primarily cash-based and consist of severance and other one-time termination benefits and other costs. In connection with the Fiscal 2024 Plan, we incurred charges of $542 million for the third quarter and first nine months of fiscal 2024. We expect this plan to be substantially completed during the first half of fiscal 2025.

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. In connection with the Fiscal 2023 Plan, we incurred charges of $135 million for the first nine months of fiscal 2024, and $87 million and $330 million for the third quarter and first nine months of fiscal 2023, respectively. These aggregate pretax charges were primarily cash-based and consist of severance and other one-time termination benefits, real estate-related charges, and other costs. We completed the Fiscal 2023 Plan in the second quarter of fiscal 2024 and incurred cumulative charges of $670 million.

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


	FISCAL 2023 PLAN				FISCAL 2024 PLAN
	Employee Severance		Other		Employee Severance		Other		Total
Liability as of July 29, 2023	$	166	$	44	$	—	$	—	$	210
Charges	104		31		526		16		677
Cash payments	(244)		(10)		(303)		(1)		(558)
Non-cash items	—		(20)		(2)		(7)		(29)
Liability as of April 27, 2024	$	26	$	45	$	221	$	8	$	300