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Note 4 - Restructuring Charges
 3 Months Ended
Mar. 28, 2026
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]

4.

Restructuring Charges

 

Poway Volume Manufacturing Transition

 

During the fourth quarter of fiscal 2024, we made the decision to transition all remaining volume manufacturing out of Poway, CA, and consolidate it into our factories in Asia. These changes have allowed us to better utilize our corporate infrastructure, drive improvements in inventory management, optimize our warehousing and better support our long-term goals. Total pretax charges related to the Poway volume manufacturing transition for the three months ended March 29, 2025 were $0.4 million. The Poway volume manufacturing transition was substantially complete as of the first quarter of fiscal 2026, and costs incurred during the three months ended March 28, 2026, were insignificant.

 

 

2025 Strategic Restructuring

 

On February 19, 2025, we approved and began executing a strategic restructuring program designed to reposition our organization and improve our cost structure (the “2025 Restructuring Program”). As part of this program, we consolidated certain of our operations in La Chaux-de-Fonds, Switzerland, and Kolbermoor, Germany, into lower‑cost locations, and we also implemented headcount reductions in those areas and in the U.S. and across Asia. Relating to the operations consolidation actions, we notified certain impacted employees of the corresponding reduction in force program at those locations which required negotiation with the microtechnology and Swiss watch trade union and the German labor organization which represent certain of the employees at their respective locations. The 2025 Restructuring Program, as implemented over time, will reduce headcount and enable us to optimize the facilities of our operations, as well as transition certain manufacturing to other lower cost regions. The 2025 Restructuring Program is being implemented as part of a comprehensive review of our operations with the goal of reducing costs during the extended downturn in the semiconductor test and inspection equipment industry.

 

In the fourth quarter of 2025, management identified additional restructuring actions under Cohu’s previously communicated 2025 Restructuring Program to further optimize our cost structure and operational footprint. These additional actions were announced and commenced on January 13, 2026, and include the further consolidation of certain operations within our IS and ST business segments in the U.S. and Asia, as well as workforce reductions across select functions.

 

As a result of the activities described above, we recognized total pretax charges of $0.8 million and $6.2 million during the three months ended March 28, 2026 and March 29, 2025, respectively, that are within the scope of ASC 420. The following table summarizes the activity within the restructuring related accounts for the 2025 Restructuring Program during the three months ended March 28, 2026 and March 29, 2025 (in thousands):

 

   

Severance and

    

Other Exit

          
   

Other Payroll

    

Costs

    

Total

  

Balance, December 28, 2024

   $ -     $ -     $ -  

Costs accrued

     6,188       48       6,236  

Amounts paid or charged

     (2,038 )     (39 )     (2,077 )

Impact of currency exchange

     74       -       74  

Balance, March 29, 2025

   $ 4,224     $ 9     $ 4,233  
                         

Balance, December 27, 2025

   $ 2,132     $ -     $ 2,132  

Costs accrued

     658       113       771  

Amounts paid or charged

     (2,160 )     (113 )     (2,273 )

Impact of currency exchange

     (1 )     -       (1 )

Balance, March 28, 2026

   $ 629     $ -     $ 629