VANCOUVER, British Columbia and SAN JOSE, Calif. — April 6, 2023 — Absolute Software™ (NASDAQ: ABST) (TSX: ABST) (the “Company”), the only provider of self-healing, intelligent security solutions, announced today that on April 4, 2023, the Company effected a restructuring plan (the “restructuring”) to lower the Company’s operating expenses. Pursuant to the restructuring, the Company reduced overall headcount by approximately 40 people, which represents approximately 5 percent of total employees, and will lead to office space reductions.
The Company estimates that it will incur non-recurring charges of approximately $1.8 million to $2.8 million in connection with the restructuring, primarily consisting of severance payments, notice pay, employee benefits contributions and related costs and impairment charges related to the exit and sublease, or cease use, of certain office facilities that the Company does not currently occupy. The Company expects that the majority of the restructuring charges will be incurred in the fourth quarter of fiscal 2023 and that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the fourth quarter of fiscal 2023.
Potential position eliminations and office reductions are subject to legal requirements that vary by jurisdiction, which may extend this process beyond the fourth quarter of fiscal 2023 in certain cases. The charges that the Company expects to incur, and the timing thereof, are subject to a number of different assumptions, including legal requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above.