PEGASYSTEMS INC (PEGA): restructuring charge — Pegasystems announces ~4% workforce reduction, expects $16M charge in Q3 2023

PEGASYSTEMS INC

Reduction of approximately 4% of employees across various geographies announced August 30, 2023.
Expected pre-tax charge of about $16 million in Q3 2023, primarily for cash severance and benefits.
Communications to affected employees expected to be substantially completed by September 8, 2023.
Realignment part of go-to-market strategy to consolidate client-facing roles and accelerate cloud transition.
Pega Cloud now represents over 40% of ACV; focus on supporting client migration to cloud.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

PEGASYSTEMS INC announced a restructuring with charges of approximately $16 million affecting various geographies (approximately 4% of its employees).

Type: restructuring
Charge: approximately $16 million
Affected area: various geographies
Headcount: approximately 4% of its employees

Exact text from the filing

as part of the go-to-market strategy and continued effort to elevate and simplify client engagement, on August 30, 2023, Pegasystems Inc. (the “Company”) announced a workforce realignment resulting in a reduction of approximately 4% of its employees across various geographies. Communications to impacted persons or their representatives are expected to be substantially completed by September 8, 2023. The Company expects to incur a charge of approximately $16 million in the third quarter of 2023 related principally to cash severance and related benefit costs for terminated employees.

View on SEC.gov

Browse all restructurings & charges →

PEGASYSTEMS INC filing history →

Source: SEC EDGAR

accession 0001193125-23-224936

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.