Restructuring

3 Months Ended

Sep. 28, 2025

Restructuring and Related Activities [Abstract]

During the first quarter of fiscal 2025, the Company initiated a headcount reduction and facility closure and consolidation plan intended to optimize its cost structure as the Company accelerates its transition from 150mm to 200mm silicon carbide devices (the "2025 Restructuring Plan").

The 2025 Restructuring Plan is expected to result in a cumulative total headcount reduction of approximately 25%. As of September 28, 2025, the 2025 Restructuring Plan has resulted in a cumulative total headcount reduction of approximately 23%, and the remainder is expected to occur over the next three months.

Including facility closure-related costs, the Company expects to incur approximately $450 million to $500 million of total costs, including approximately $75 million of involuntary and voluntary severance costs, $160 million of other closure-related cash costs, and approximately $265 million of charges related to long-lived assets and other non-cash costs, including accelerated depreciation and impairments upon abandonment or disposal of machinery and equipment.

A summary of the charges recognized in the consolidated statements of operations through the first quarters of fiscal 2026 and fiscal 2025, respectively, resulting from these restructuring activities is shown below:


	Three months ended	Three months ended
(in millions of U.S. Dollars)	September 28, 2025	September 29, 2024
Accelerated depreciation	$5.6	$11.7
Inventory Reserves	2.5	—
Other closure-related costs	10.0	22.6
Total cost of revenue, net	$18.1	$34.3

Impairments on abandoned assets	$0.1	$—
Severance(1)	0.1	36.5
Accelerated depreciation (2)	—	7.1
Contract termination costs	2.3	—
Other closure-related costs	1.2	9.2
Other operating expense	$3.7	$52.8
Total	$21.8	$87.1

(1)Employee severance and benefit costs include the early exit program activity

(2) Includes net impact of change in salvage value and estimated useful life related to 150mm fab tooling and equipment

A summary of the balance sheet activity related to these restructuring activities recognized in accounts payable and accrued expenses in the unaudited consolidated balance sheet as of September 28, 2025 follows:


(in millions of U.S. Dollars)	As of June 29, 2025	Charges	Usage	September 28, 2025
Employee severance and benefit costs(1)	$25.2	$0.1	($11.9)	$13.4
Contract termination liability	5.5	2.3	(2.0)	5.8
Total	$30.7	$2.4	($13.9)	$19.2

(1)Employee severance and benefit costs includes the early exit program activity