Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 76

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 to further optimize our operations following the sale of the Divested Business in July 2024. The PSP includes simplifying our post-divestiture operating model, rationalizing our technology spend, expanding our use of artificial intelligence and automation and continued optimization of real estate. The Company currently expects to record in the aggregate approximately $65 million in pre-tax restructuring costs over the duration of the PSP, which includes primarily cash severance payments with an estimated range of $20 million to $30 million and other restructuring cash payments and charges related to technology spend, professional services and optimization of real estate with an estimated range of $25 million to $35 million. The Company estimates an annual savings of over $75 million after the PSP is completed. The PSP commenced in the second quarter of 2025 and is expected to be substantially completed over an estimated fifteen-month period.

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The following table summarizes restructuring costs by type (in millions):Three Months Ended June 30, 2025Three Months Ended June 30, 2024Six Months Ended June 30, 2025Six Months Ended June 30, 2024Inception to DateEstimated Remaining CostEstimated Total CostTransformation ProgramEmployer SolutionsSeverance and Related Benefits$— $6 $2 $10 $45 $— $45 Other Restructuring Costs(1)— 12 2 23 95 — 95 Total Transformation Program Costs$— $18 $4 $33 $140 $— $140 Post-Separation PlanEmployer SolutionsSeverance and Related Benefits$20 $— $20 $— $20 $— $20 Other Restructuring Costs(1)16 — 16 — 16 29 45 Total PSP Costs$36 $— $36 $— $36 $29 $65 Total Restructuring Costs$36 $18 $40 $33 $176 $29 $205 (1)Other restructuring costs primarily include data center exit costs, optimization of real estate, third party fees associated with the restructuring, and costs associated with transitioning existing technology and processes. During each of the three and six months ended June 30, 2025, the Company determined that certain facilities were impaired and recorded ROU asset impairment charges of $9 million. The related liabilities will be satisfied under the original terms of the lease