Restructuring and Other Charges

6 Months Ended

Jan. 27, 2024

In the third quarter of fiscal 2024, we initiated a restructuring plan (the “Fiscal 2024 Plan”) in order to realign the organization and enable further investment in key priority areas. The Fiscal 2024 Plan will impact approximately 5% of our global workforce, with estimated pretax charges of approximately $800 million. These aggregate pretax charges will be primarily cash-based and consist of severance and other one-time termination benefits and other costs. We expect this plan to be substantially completed during the first half of fiscal 2025.

In the second quarter of fiscal 2023, we announced a restructuring plan (the “Fiscal 2023 Plan”) in order to rebalance the organization and enable further investment in key priority areas. In connection with the Fiscal 2023 Plan, we incurred charges of $12 million and $135 million for the second quarter and first six months of fiscal 2024, respectively. We incurred charges of $243 million for the second quarter and first six months of fiscal 2023. Total cumulative charges of $670 million have been recognized to date. These aggregate pretax charges were primarily cash-based and consist of severance and other one-time termination benefits, real estate-related charges, and other costs. We completed the Fiscal 2023 Plan in the second quarter of fiscal 2024.

The following table summarizes the activities related to the Fiscal 2023 Plan (in millions):


	FISCAL 2023 PLAN
	Employee Severance		Other		Total
Liability as of July 29, 2023	$	166	$	44	$	210
Charges	104		31		135
Cash payments	(222)		(8)		(230)
Non-cash items	—		(15)		(15)
Liability as of January 27, 2024	$	48	$	52	$	100