Fastly, Inc. (NYSE:FSLY), a provider of cloud-based content delivery network services, has announced a restructuring plan that will reduce its workforce by approximately 11%. The plan, disclosed in a recent SEC filing, is part of the company's efforts to decrease expenses and streamline operations.
The restructuring, which was decided upon on Monday, August 7, 2024, is expected to result in charges between $9.5 million to $10 million in the third quarter of 2024. These charges will mainly cover severance payments and benefits for the affected employees. The company also noted that there would be an immaterial amount of non-cash charges related to stock-based compensation.
Fastly expects to complete the majority of the workforce reduction by the end of the 2024 fiscal year on December 31. However, the company cautions that the estimated costs associated with the restructuring could change based on various assumptions, and additional expenses not currently anticipated could arise as the plan is implemented.
The company's statement includes forward-looking remarks about its intentions to enhance operational efficiencies and the anticipated timing and financial impact of the restructuring. These statements are subject to various risks and uncertainties, including the company's financial and operational performance, product success, customer acquisition efforts, and ability to execute its long-term strategy.
This news comes as part of a broader trend within the technology sector, where companies are adjusting their workforces in response to changing market conditions and the need for operational agility.
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