2024 Restructuring Program: The Company began a restructuring program (the “2024 Restructuring Program”) during the three months ended March 31, 2024 to drive our enterprise strategy and reduce our cost structure. The 2024 Restructuring Program will be executed in phases, focusing on waste reduction, reprioritizing our product and technology teams on fewer strategic initiatives, driving synergies across our portfolio of services, and unifying the go to market strategy of our divisions.

The major initiatives of the first phase, which commenced in the three months ended March 31, 2024, include: 1) optimizing our management hierarchy, which includes a reduction in workforce; and 2) reprioritizing the efforts of our product and technology teams, resulting in the impairment of certain internally developed software projects. We have realigned our product and technology teams on fewer strategic initiatives to accelerate the capabilities of our platform to deliver market-leading outcomes for our customers, carriers, and employees.

The primary initiatives of the second phase will commence in the second quarter of 2024. These initiatives include the rationalization of our facilities footprint including the consolidation, early termination, or abandonment of office buildings under operating leases. The second phase may also include other initiatives yet to be identified that will drive our enterprise

strategy and improve our cost structure. We expect all activities under the 2024 Restructuring program to be completed by the end of 2024.

We recognized restructuring charges of $12.9 million in the first quarter of 2024 primarily related to workforce reductions and the impairment of certain capitalized internally developed software projects. Based upon the initiatives identified to date, we anticipate recognizing a total of approximately $25 million of restructuring charges related to the 2024 Restructuring Program in 2024. The amount of restructuring charges we recognize, and the timing of recognition, will depend upon the nature and scope of initiatives we identify and our ability to enact changes to our real estate footprint under existing operating leases.

A summary of charges related to our 2024 Restructuring Program recognized in the three months ended March 31, 2024 are presented below (in thousands):


	Three Months Ended March 31,
	2024
Severance(1)	$	7,414
Other personnel expenses(1)	528
Other selling, general, and administrative expenses(2)	4,969
Total	$	12,911

________________________________

(1) Amounts are included within personnel expenses in our condensed consolidated statements of operations and comprehensive income.

(2) Amounts are included within other selling, general, and administrative expenses in our condensed consolidated statements of operations and comprehensive income. Amounts recognized in the three months ended March 31, 2024 primarily relate to the impairment of certain capitalized internally developed software projects.


	Three Months Ended March 31, 2024
	NAST		Global Forwarding		All Other and Corporate		Consolidated
Personnel expenses	$	3,027	$	3,191	$	1,724	$	7,942
Other selling, general, and administrative expenses	1,877		232		2,860		4,969

The following table summarizes activity related to our 2024 restructuring program and reserves included in our consolidated balance sheets (in thousands):


	Accrued Severance and Other Personnel Expenses		Accrued Other Selling, General, and Administrative Expenses		Total
Balance, December 31, 2023	$	—	$	—	$	—
Restructuring charges	7,942		4,969		12,911
Cash payments	(2,446)		(46)		(2,492)
Settled non-cash	—		(4,923)		(4,923)

Balance, March 31, 2024	$	5,496	$	—	$	5,496

2022 Restructuring Program: In 2022, we announced organizational changes to support our enterprise strategy of accelerating our digital transformation and productivity initiatives. The initiatives under our 2022 Restructuring Program were completed in 2023. We had $3.8 million of accrued severance and other personnel expenses remaining as of as December 31, 2023. We paid $2.3 million of cash in the first quarter of 2024. There is no further activity expected related to the 2022 Restructuring Program other than settling the remaining $1.3 million of accrued severance and other personnel expenses as of March 31, 2024.


	Three Months Ended March 31,
	2023
Severance(1)	$	3,138
Other personnel expenses(1)	460
Other selling, general, and administrative expenses(2)	124
Total	$	3,722

________________________________

(1) Amounts are included within personnel expenses in our condensed consolidated statements of operations and comprehensive income.

(2) Amounts are included within other selling, general, and administrative expenses in our condensed consolidated statements of operations and comprehensive income.


	Three Months Ended March 31, 2023
	NAST		Global Forwarding		All Other and Corporate		Consolidated
Personnel expenses	$	829	$	1,538	$	1,231	$	3,598
Other selling, general, and administrative expenses	—		124		—		124

The following table summarizes activity related to our 2022 restructuring program and reserves included in our consolidated balance sheets (in thousands):


	Accrued Severance and Other Personnel Expenses
Balance, December 31, 2023	$	3,783
Restructuring charges	—
Cash payments	(2,323)

Accrual adjustments(1)	(111)
Balance, March 31, 2024	$	1,349

(1) Accrual adjustments primarily relate to changes in estimates for certain employee termination costs, including those settling for an amount different than originally estimated and foreign currency adjustments.