RESTRUCTURING

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

During the fourth quarter of 2024, we completed a detailed review of our strategy and made several decisions that will narrow and intensify our focus on our U.S. PEO business. This will include winding down the software-only HRIS product as well as other immaterial products not directly related to our U.S. PEO business. In place of our software-only HRIS product, we will focus our ASO services to include both the software component, but also a significant service component similar to the types of services we provide to PEO clients.

In conjunction with this adjustment to our product offerings, we have implemented changes to our operating expense structure, including our staffing and office footprint.

As part of the restructuring initiatives, the Company incurred $2 million and $5 million of restructuring costs for the three and nine months ended September 30, 2025. These expenses are classified in G&A in our condensed consolidated statement of income and comprehensive income.

Severance costs include payments to colleagues, estimated reimbursements for COBRA payments and outplacement services. The following table is a summary of accrued severance and exit and disposal costs included within accounts payable and other current liabilities and accrued wages:


(in millions)	Accounts payable and other current liabilities		Accrued wages
Balance at December 31, 2024	$	1	14
(+) Additions	—		2
(-) Payments	—		(8)

Balance at September 30, 2025	$	1	$	8

We expect to make payments for these liabilities during 2025 and into 2026. We expect the restructuring efforts to continue through 2026 and may recognize additional expenses as they are incurred.