FORMFACTOR INC 8-K

What Happened FormFactor, Inc. announced on January 5, 2026 a restructuring plan to better align costs, improve gross margins, and match manufacturing capacity to business needs. The company is consolidating its Carlsbad, CA and Baldwin Park, CA manufacturing facilities and expects personnel-related actions affecting approximately 200–300 employees. FormFactor estimates it will record roughly $30–40 million of restructuring charges on a GAAP basis, with most charges recognized in the current fiscal year.

Key Details

• Plan adoption date: January 5, 2026; expected largely completed by end of December 2026 (facility charges may extend beyond that).
• Total estimated GAAP charges: approximately $30–40 million.
  • ~$20–25M: impairment of leasehold improvements, facility exits, and other facility-related costs
  • ~$9–13M: severance, retention and other employee-related costs
  • ~$1–2M: contract and lease termination costs
• Cash vs non-cash: roughly $10–15M expected cash expenditures; ~$20–25M expected non-cash charges.
• Personnel impact: costs to sever or retain approximately 200–300 employees.
• The filing includes standard forward-looking statement caution that estimates may change; the excerpt references Item 2.06 (Material Impairments) but that disclosure was not provided in the text supplied.

Why It Matters This restructuring is a significant operational move that will affect FormFactor’s near-term costs and workforce while aiming to improve margins and better match manufacturing to demand. Investors should note the one-time GAAP charges (both cash and non-cash) that will reduce reported earnings in the period they are recorded, while potential cash outflows are concentrated in the lower ($10–15M) range. Because the amounts are estimates and subject to revision, management may update these figures in future filings.