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Restructuring Costs
 9 Months Ended
Sep. 27, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
In the fourth quarter of 2023, the Company initiated cost reduction actions to reduce operating expenses and accelerate
gross margin initiatives, and recognized $33.8 million of restructuring costs through December 28, 2024. The Company
has incurred an additional $47.5 million and of restructuring costs during the nine months ended September 27, 2025.
Charges incurred related to this initiative were comprised of contract termination costs, severance and employee-related
benefits, professional fees and other, and asset impairment charges and are included in restructuring costs in the
Company’s condensed consolidated statement of operations. The Company expects approximately $3 million of additional
restructuring costs to be incurred through the remainder of 2025, primarily due to severance and employee-related
benefits, contract termination costs, and asset impairment charges.
The following table provides a summary of the Company’s restructuring costs during the three and nine months ended
September 27, 2025 and September 28, 2024 (in thousands):
Three Months Ended
Nine Months Ended
September 27,
2025
September 28,
2024
September 27,
2025
September 28,
2024
Cash restructuring costs:
Contract termination costs (1)
$5,878
$300
$7,173
$4,483
Severance and employee-related benefits
2,923
1,663
9,415
2,905
Professional fees and other
801
—
818
4,494
Total cash restructuring costs
9,602
1,963
17,406
11,882
Non-cash restructuring costs:
Asset impairments (2)
29,552
—
30,140
2,500
Total restructuring costs
$39,154
$1,963
$47,546
$14,382
____________________
(1) Primarily comprised of strategic-development partner contract termination costs and lease termination costs.
(2) Primarily comprised of impairments of strategic-development partner long-lived assets, right-of-use assets and property and equipment.
The following table provides the activity in the Company’s restructuring related liabilities, which are included within
accounts payable, compensation and benefits and other current liabilities on the condensed consolidated balance sheet
(in thousands):
September 27,
2025
December 28,
2024
Balance at the beginning of year
$3,341
$8,720
Expenses
17,406
14,888
Cash payments
(12,735)
(20,267)
Balance at the end of the period
$8,012
$3,341
Since the initiation of cost reduction actions in the fourth quarter of 2023, the Company has recognized a cumulative
$81.3 million of restructuring costs, as follows (in thousands):
Cumulative
September 27,
2025
Cash restructuring costs:
Contract termination costs (1)
$21,610
Severance and employee-related benefits
17,608
Professional fees and other
6,562
Total cash restructuring costs
45,780
Non-cash restructuring costs:
Asset impairments (2)
35,560
Total restructuring costs
$81,340
____________________
(1)Primarily comprised of strategic-development partner contract termination costs and lease termination costs.
(2) Primarily comprised of impairments of strategic-development partner long-lived assets, right-of-use assets and property and equipment.