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Restructuring Expenses and Operating Model Optimization Initiatives
 9 Months Ended
Sep. 28, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Expenses and Operating Model Optimization Initiatives Restructuring Expenses and Operating Model Optimization Initiatives
As part of the Company’s continued transformation to a fit-for-purpose consumer company, during the fiscal year 2024, the Company began strategic initiatives intended to enhance organizational efficiencies and better position Kenvue for future growth (“Our Vue Forward”). To further Our Vue Forward, on May 6, 2024, the Company’s Board of Directors approved a multi-year initiative (the “2024 Multi-Year Restructuring Initiative”) to build on the Company’s strengths, improve underlying information technology infrastructure, and optimize its cost structure by rebalancing resources to better position the Company for future growth. The 2024 Multi-Year Restructuring Initiative primarily includes global workforce reductions, changes in management structure, and the transition to centralized shared-service functions in lower-cost locations.

The 2024 Multi-Year Restructuring Initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $550 million, consisting of information technology and project-related costs (approximately 50%), employee-related costs (approximately 40%), and other implementation costs (approximately 10%). These charges are expected to be funded primarily through cash flows generated from operations. The Company planned to incur approximately $275 million in pre-tax restructuring expenses and other charges in each of fiscal year 2024 and fiscal year 2025. The Company incurred lower than expected spend in fiscal year 2024 due to the shift in timing of certain information technology and project-related costs to fiscal year 2025.

The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2024 Multi-Year Restructuring Initiative during the fiscal three and nine months ended September 28, 2025 and September 29, 2024:

Fiscal Three Months EndedFiscal Nine Months Ended
(Dollars in Millions)September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Restructuring expenses$84 $31 $204 $120 
Cost of sales8 4 20 19 
Selling, general, and administrative expenses5 3 8 7 
Total pre-tax restructuring expenses and other charges$97 $38 $232 $146 
The following table summarizes the pre-tax restructuring expenses and other charges incurred by cost type related to the 2024 Multi-Year Restructuring Initiative during the fiscal three and nine months ended September 28, 2025 and September 29, 2024 and inception-to-date through September 28, 2025:

Fiscal Three Months EndedFiscal Nine Months EndedInception-To-Date Through September 28, 2025
(Dollars in Millions)September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Employee-related costs(1)
$32 $17 $78 $81 $184 
Information technology and project-related costs(2)
60 18 147 49 246 
Other implementation costs(3)
5 3 7 16 23 
Total pre-tax restructuring expenses and other charges
$97 $38 $232 $146 $453 
(1) Employee-related costs primarily include severance and other termination benefits.
(2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative.
(3) Other implementation costs primarily include costs to terminate contracts, impairments of assets, and other associated costs to exit.

The following table summarizes the activity related to accrued restructuring expenses and other charges for the 2024 Multi-Year Restructuring Initiative during the fiscal nine months ended September 28, 2025:

(Dollars in Millions)
Employee-Related Costs(1)
Information Technology and Project-Related Costs(2)
Other Implementation Costs(3)
Total Accrued Costs
December 29, 2024$25 $65 $3 $93 
Charges to earnings78 147 7 232 
Cash payments(69)(141)(4)(214)
Non-cash charges— — (4)(4)
September 28, 2025$34 $71 $2 $107 
(1) Employee-related costs primarily include severance and other termination benefits.
(2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative.
(3) Other implementation costs primarily include costs to terminate contracts, impairments of assets, and other associated costs to exit.