Severance and Restructuring Costs |
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Restructuring And Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance and Restructuring Costs |
7. Severance and Restructuring Costs Severance Costs During fiscal 2019, we incurred additional severance charges not related to a restructuring plan of $0.8 million, primarily from the departure of 19 former employees. During fiscal 2018, we incurred additional severance charges not related to a restructuring plan of $0.5 million, primarily from the departure of 14 former employees. Restructuring Costs During fiscal 2019, we incurred restructuring charges of $1.6 million, primarily for employee-related benefits for terminated employees. In September 2018, we announced that we implemented cost-savings actions during the third quarter of fiscal 2019 (the “2019 Restructuring Program”). The primary element of this restructuring program was staff reductions across all of our functions and geographic areas and we expect the program to be completed by the end of the first fiscal quarter of 2020. Annualized cost savings are expected to be over $6 million once completed and severance and restructuring charges are expected to be approximately $2 million. During fiscal 2018, we incurred restructuring charges of $4.2 million primarily from employee-related benefits for terminated employees and costs to close facilities related to our restructuring program implemented in fiscal 2017. During the third quarter of fiscal 2017, we implemented a restructuring program (the “2017 Restructuring Program”) with the purpose of reducing costs and assisting in restoring SeaChange to profitability and positive cash flow. This program included measures intended to allow us to more efficiently operate in a leaner, more direct cost structure. These measures included reductions in workforce, consolidation of facilities, transfers of certain business processes to lower cost regions and reduction in third-party service costs. The 2017 Restructuring Plan was substantially complete as of January 31, 2018. Since its implementation, we recognized $7.2 million in restructuring charges related to the 2017 Restructuring Program. The following table shows the change in balances of our accrued restructuring reported as a component of other accrued expenses on the consolidated balance sheets:
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