UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.05 Costs Associated with Exit or Disposal Activities.
On March 4, 2024, the Board of Directors (the “Board”) of Edgio, Inc. (the “Company”) approved a restructuring plan (the “Restructuring Plan”) in order to reduce its operating costs as part of its initiative to optimize its business model and increase efficiencies. The Restructuring Plan is anticipated to entail a reduction in force of approximately 80 employees, or approximately 10% of the Company’s global workforce, to be implemented through the second quarter of 2024 (the “Reduction in Force”).
The Company estimates that Restructuring Plan charges will be approximately $2.7 million and will be recorded as restructuring expenses related to one-time severance charges. The foregoing estimated charges will be cash expenditures. The Company anticipates it will generate approximately $18.6 million in net annual savings.
Forward-Looking Statement Disclaimer
The Company includes in this Current Report “forward-looking statements” within the meaning of the federal securities laws. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as “expect,” “estimate,” “intends,” and similar expressions that concern the Company’s strategy, plans, intentions or beliefs about future occurrences or results, including without limitation statements regarding the anticipated financial results of the Company’s restructuring initiative discussed herein.
Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that the Company expected. Many of these statements are derived from the Company’s operating budgets and forecasts, which are based on many detailed assumptions that the Company believes are reasonable, or are based on various assumptions about certain plans, activities or events which the Company expects will or may occur in the future. However, it is very difficult to predict the effect of known factors, and the Company cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed in this Current Report and those factors disclosed under “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 29, 2023 and the Company’s subsequent current reports filed with the SEC.
The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EDGIO, INC. | ||||||
| Dated: March 7, 2024 | By: | /s/ Richard P. Diegnan | ||||
| Richard P. Diegnan | ||||||
| Chief Legal Officer & Secretary | ||||||
Document and Entity Information |
Mar. 04, 2024 |
|---|---|
| Cover [Abstract] | |
| Security Exchange Name | NASDAQ |
| Amendment Flag | false |
| Entity Central Index Key | 0001391127 |
| Document Type | 8-K |
| Document Period End Date | Mar. 04, 2024 |
| Entity Registrant Name | EDGIO, INC. |
| Entity Incorporation State Country Code | DE |
| Entity File Number | 001-33508 |
| Entity Tax Identification Number | 20-1677033 |
| Entity Address, Address Line One | 11811 North Tatum Blvd. |
| Entity Address, Address Line Two | Suite 3031 |
| Entity Address, City or Town | Phoenix |
| Entity Address, State or Province | AZ |
| Entity Address, Postal Zip Code | 85028 |
| City Area Code | (602) |
| Local Phone Number | 850-5000 |
| Security 12b Title | Common stock, par value $0.001 per share |
| Trading Symbol | EGIO |
| Written Communications | false |
| Soliciting Material | false |
| Pre Commencement Tender Offer | false |
| Pre Commencement Issuer Tender Offer | false |
| Entity Emerging Growth Company | false |