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Restructuring
 3 Months Ended
Apr. 04, 2021
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
January 2021 Restructuring Plan

During the quarter ended April 4, 2021, we adopted a restructuring plan to realign and optimize workforce requirements concurrent with the planned closure of our manufacturing facility in Hillsboro, Oregon. In connection with the restructuring plan, which included actions to be implemented in the first quarter of 2021 and expected to be completed by the third quarter of 2021, we expected the majority of our approximately 170 primarily manufacturing employees to exit over a period of 3 to 6 months.
Further, in connection with the closure, in April 2021, we signed agreements with two independent third parties to sell certain assets and liabilities, as well as, retain and engage some employees at the facility in providing R&D services. The proceeds for the assets and sale of R&D services, together with the assumption of certain liabilities, will reduce our previously anticipated restructuring charges.

As of April 4, 2021, we had incurred cumulative costs of approximately $3.7 million in restructuring charges, primarily relating to the severance benefits. The majority of the remaining charges relating to the severance benefits are expected to be incurred in the second fiscal quarter of 2021, while a small portion may be incurred in 2022 through the end of the R&D services agreement. We expect to incur restructuring charges totaling approximately $7.0 million to $9.0 million, consisting primarily of severance benefits (between $4.0 million and $5.0 million) and real estate lease termination costs (between $3.0 million and $4.0 million).

December 2019 Restructuring Plan

During the fourth quarter of fiscal 2019, we adopted a restructuring plan to realign and optimize workforce requirements in light of changes to our business, including the Spin-Off of Maxeon Solar. In connection with the restructuring plan, which included actions implemented in the fourth quarter of 2019, we expected between 145 and 160 non-manufacturing employees, representing approximately 3% of our global workforce, to exit over a period of approximately 12 to 18 months. Between 65 and 70 of these employees were in our legacy SunPower Technologies business unit and corporate, most of whom exited our company following the Spin-Off, and the remainder of which exited upon completion of transition services. As the legacy SunPower Energy Services business unit refines its focus on distributed generation, storage, and energy services, 80 to 90 employees exited during the fourth fiscal quarter of 2019 and the first half of 2020. As of April 4, 2021, we had incurred cumulative costs of approximately $10.2 million in restructuring charges consisting primarily of severance and retention benefits and the Plan is substantially complete.

The following table summarizes the comparative periods-to-date restructuring charges by plan recognized in our condensed consolidated statements of operations:

Three Months Ended
(In thousands)April 4, 2021March 29, 2020Cumulative To Date
January 2021 Restructuring Plan:
Severance and benefits$3,671 $— $3,671 
Other costs1
13 — 13 
Total January 2021 Restructuring Plan3,684 — 3,684 
December 2019 Restructuring Plan:
Severance and benefits(28)1,639 10,005 
Other costs1
112 — 159 
Total December 2019 Restructuring Plan84 1,639 10,164 
Other Legacy Restructuring Plans(2)(63)68,640 
Total restructuring charges (credits)$3,766 $1,576 $82,488 
1 Other costs primarily represented associated legal and advisory services and costs of relocating employees.
The following table summarizes the restructuring reserve activities during the three months ended April 4, 2021:
Three Months Ended
(In thousands)January 3, 2021Charges (Benefits)(Payments) RecoveriesApril 4, 2021
January 2021 Restructuring Plan:
Severance and benefits$— $3,671 $(34)$3,637 
Other costs1
— 13 (13)— 
Total January 2021 Restructuring Plan— 3,684 (47)3,637 
December 2019 Restructuring Plan:
Severance and benefits2,608 (28)(1,815)765 
Other costs1
— 112 (112)— 
Total December 2019 Restructuring Plan2,608 84 (1,927)765 
Other Legacy Restructuring Plans200 (2)(68)130 
Total restructuring reserve activities$2,808 $3,766 $(2,042)$4,532 
1 Other costs primarily represented associated legal and advisory services and costs of relocating employees.