Workday to cut ~2% of workforce, take $135M charge in Q4 FY2026; GAAP margin to drop 24-25 pts

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

underlying real property but has not entered into a contract of sale as of the date of this report. The Company expects to incur pre-tax non-recurring charges of approximately $43 million under the plan, of which approximately $36 million is expected to consist of impairment charges relating to fixed asset and inventory write-downs and approximately $7 million is

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

Ahead of its name change to "People Incorporated" which is expected to occur with the release of Q2 2026 earnings in August, the Company has initiated a plan to consolidate its corporate functions with those of its People Inc. business (" People "), through a reduction in workforce, technology integrations, and other cost-saving measures over the coming quarters (the " Plan "). The Plan is expected to generate annual run-rate cost savings of approximately $40 million. The Plan is expected to be completed by Q1 of 2027. The Company expects to incur approximately $14 million in severance and related expenses, $48 million in non-cash stock-based compensation expense and $0.5 million to $1 million in other costs related to the Plan.

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

increased operational efficiencies to accelerate our path toward net-income profitability. As a result, we currently estimate that we will incur pre-tax charges in the range of $95 million to $130 million, primarily consisting of severance and related costs, contract termination costs, and other impairment charges, of which $75 million to $100 million are expected

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

On April 9, 2026, the Company also announced a cost reduction program that includes a reduction in the Company’s workforce of approximately 11% of its full-time roles, including certain management roles and two executive roles. In connection with this workforce reduction, the Company expects to incur aggregate charges of approximately $8.5-$9 million, consisting primarily of employee-related costs, including severance, benefits, and other related expenses.

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

On March 25, 2026, EnerSys announced a plan to close its facility in Tijuana, Mexico, which focused on manufacturing lead acid batteries. EnerSys expects to incur a pre-tax charge of approximately $37 million under this restructuring plan when completed, the majority of which is expected to be incurred by the second half of fiscal year 2027, of which $14 million is expected to be non-cash charges primarily from equipment write-offs. Cash charges of approximately $23 million, include severance and employee retention costs, environmental related expenses and equipment decommissioning, along with contractual releases and legal expenses.

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

On January 5, 2026, FormFactor, Inc. (“we”, “the Company” or “FormFactor”) adopted restructuring plans that are intended to better align cost structure and support gross margin improvement to the Company’s target financial model, while also aligning manufacturing capabilities with current and anticipated business needs and the Company's strategic priorities. As part of this restructuring plan, the Company is consolidating the manufacturing facilities located in Carlsbad, California and Baldwin Park, California. As a result, we have incurred, or expect to incur, personnel-related costs to sever or retain approximately 200 to 300 employees. We expect the actions defined under these plans will be largely completed by the end of December 2026, except facilities charges, which may extend beyond that time. The restructuring plans are expected to result in the Company recording restructuring charges in the aggregate amount of approximately $30 to $40 million on a GAAP basis, estimated to be c

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

HNI anticipates charges resulting from the consolidation will impact pre-tax earnings by an estimated $14.9 million in 2026 and 2027, including $5.7 million of non-cash charges.

This filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

Comparable filing

The Company recorded an expense of approximately $7.4 million in connection with the Plan during the fourth quarter of fiscal 2025 and estimates an additional $6.5 million in fiscal 2026, which are primarily related to severance payments, professional services, and other related costs.