Company: ATRA
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035507
Chunk: 224

Company: Atara Biotherapeutics, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 224
---
, 2024, we announced a strategic reduction in workforce of approximately 25%. The workforce reduction resulted in total restructuring charges of $5.1 million, comprised primarily of severance payments and wages for the 60-day notice period in accordance with the California WARN Act. In most cases, the severance payments were paid during the first half of 2024. Certain of the notified employees had employment agreements that provided for separation benefits in the form of salary continuation, which are being paid from February 2024 through January 2025. As of December 31, 2024, $0.1 million of further separation payments and 

119

benefits are required for the January 2024 reduction in workforce. The majority of the associated costs are cash expenditures and primarily represent one-time termination benefits. The following is a summary of restructuring charges associated with the reductions in force for the periods presented: 

        Year Ended December 31,

        Year Ended December 31,

        2024

        2023

        (in thousands)

        Research and development expense
        $
        3,750

        $
        5,619

        General and administrative expense
         
        1,357

        1,111

        Total restructuring charges
        $
        5,107

        $
        6,730

      The following restructuring liability activity was recorded in connection with the reduction in force for the year ended December 31, 2024, with all of the $0.1 million liability balance as of December 31, 2024 included within other current liabilities on the accompanying consolidated balance sheet: 

        Year ended December 31,

        Year ended December 31,

        2024

        2023

        (in thousands)

        Liability balance, January 1
        $
         
        4,923

        $
         
        1,545

        Restructuring charges

        5,107

        6,730

        Cash payments

        (9,298
        )

        (3,352
        )

        Non-cash settlements/adjustments

        (669
        )

        —

        Liability balance, December 31
        $
         
        63

        $
         
        4,923

9.Commitments and ContingenciesMSK In-License AgreementsIn June 2015, we entered into an exclusive license agreement with MSK for three clinical stage T-cell therapies. We are