On August 26, 2026, the Company announced that it is advancing global scaling initiatives as part of its ongoing actions to improve operational efficiency and better align resources with the Company’s strategic priorities. The changes include reallocating certain roles and realigning teams to continue to improve operational resiliency and agility. The immediate impact is a reduction in the Company’s current headcount of approximately 15%.
 
The Company estimates that it will incur non-recurring charges in a range of $5.5 million to $7.5 million in connection with the headcount reductions, primarily consisting of severance payments, notice pay (where applicable), employee benefits payments and related costs. The Company expects that the majority of the restructuring charges will be incurred in the third quarter of fiscal 2027 and that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the fourth quarter of fiscal 2027.
 
Potential position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond the fourth quarter of fiscal 2027 in certain cases. The charges that the Company expects to incur are subject to a number of assumptions, including legal requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above.