Brief: Contextlogic Inc Says Co's Board Of Directors Approved A Restructuring Plan

ContextLogic Holdings

01/03/2022 21:56

March 1 (Reuters) - ContextLogic Inc  WISH.O :
    * CONTEXTLOGIC INC - ON FEBRUARY 24, 2022, COMPANY'S BOARD
OF
DIRECTORS APPROVED A RESTRUCTURING PLAN
    * CONTEXTLOGIC INC - EXPECTS RESTRUCTURING PLAN TO BE
SUBSTANTIALLY IMPLEMENTED BY END OF FISCAL YEAR 2022
    * CONTEXTLOGIC INC - RESTRUCTURING PLAN INCLUDES  REDUCING
COMPANY'S HEADCOUNT BY APPROXIMATELY 15% (OR APPROXIMATELY 190
POSITIONS)
    * CONTEXTLOGIC INC - RESTRUCTURING PLAN INCLUDES EXITING
VARIOUS
FACILITY LEASES, AND REDUCING AND REALIGNING VENDOR EXPENDITURES
    * CONTEXTLOGIC INC - ESTIMATES THAT IT WILL INCUR ONE-TIME
CHARGES
OF $3 MILLION FOR EMPLOYEE SEVERANCE AND OTHER PERSONNEL
REDUCTION COSTS
    * CONTEXTLOGIC - ESTIMATES MAXIMUM OF $21 MILLION CONSISTING
OF
COSTS TO EXIT CERTAIN FACILITY LEASES, RELATED NONCASH
IMPAIRMENTS
    * CONTEXTLOGIC INC - ANTICIPATES THAT RELATED SEVERANCE
PAYMENTS
WILL OCCUR BY END OF Q2 OF 2022
    * CONTEXTLOGIC - EXPECTS TO ACHIEVE AN APPROXIMATE RANGE OF
$32
MILLION-$37 MILLION IN ANNUALIZED COST SAVINGS AS A RESULT OF
RESTRUCTURING PLAN

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