Movella Holdings Inc.: restructuring charge — Movella cuts 20% of workforce, exits non-core activities; expects $1.1-1.6M charge

Movella Holdings Inc.

Workforce reduction of ~20% decided on Aug 31, 2023; substantially complete in Q3 2023.
Company exiting certain non-core business activities as part of restructuring.
Pre-tax cash severance and restructuring charge estimated between $1.1M and $1.6M in Q3 2023.
Expects cost savings of approximately $2.0M per quarter following the restructuring.

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

Movella Holdings Inc. announced a restructuring with charges of between approximately $1.1 million and $1.6 million (approximately 20%).

Type: restructuring
Charge: between approximately $1.1 million and $1.6 million
Headcount: approximately 20%

Exact text from the filing

on August 31, 2023, the Company decided to reduce its number of employees by approximately 20%. The Company expects to substantially complete this workforce reduction in the third quarter of 2023. Additionally, the Company elected to restructure its operations by exiting certain non-core business activities. As a result of this workforce reduction and restructuring, the Company expects to incur a pre-tax cash charge for severance and restructuring costs, which consists of one-time termination benefits and contract termination costs, of between approximately $1.1 million and $1.6 million in the third quarter of 2023.

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Source: SEC EDGAR

accession 0001628280-23-031472

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