FormFactor (FORM) to consolidate California plants, record $30–$40M charges

Rhea-AI Filing Summary

FormFactor, Inc. has approved restructuring plans to better align its cost structure and manufacturing footprint with current and expected demand and its strategic priorities. The company will consolidate its manufacturing facilities in Carlsbad and Baldwin Park, California, and expects personnel-related actions affecting approximately 200 to 300 employees, with most actions completed by the end of December 2026.

FormFactor expects to record total restructuring charges of about $30 to $40 million on a GAAP basis. This includes an estimated $20 to $25 million for impairment of leasehold improvements, facility exits and other costs, $9 to $13 million in severance, retention and other employee-related expenses, and $1 to $2 million for contract and lease terminations. Of the total, around $10 to $15 million are expected to be future cash expenditures, while approximately $20 to $25 million are expected to be non-cash charges, with most charges incurred in the current fiscal year.

Insights

Equity Restructuring Analyst

FormFactor records sizable restructuring and impairment charges to realign manufacturing.

FormFactor is consolidating its Carlsbad and Baldwin Park, California manufacturing sites and restructuring its operations to support its target financial model and gross margin goals. The plans involve personnel-related actions for roughly 200 to 300 employees and are expected to be largely completed by the end of December 2026, which indicates a multi-year operational transition rather than a short-term adjustment.

The company expects total GAAP restructuring charges of $30 to $40 million, with $20 to $25 million related to impairment of leasehold improvements, facility exits and other costs, $9 to $13 million in severance and other employee-related items, and $1 to $2 million in contract and lease termination costs. It estimates $10 to $15 million will be cash expenditures and $20 to $25 million will be non-cash charges, with most charges recognized in the current fiscal year.

This mix of cash and non-cash costs suggests a near-term drag on reported earnings and some cash outflow, while removing or repurposing facilities that no longer match anticipated business needs. The company notes these are forward-looking estimates that may change, and any revisions to the size or timing of the charges would be reflected in future periods.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 ____________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  January 5, 2026

FORMFACTOR, INC.

(Exact Name of Registrant as Specified in Charter)

 

Delaware

000-50307

13-3711155

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

7005 Southfront Road

Livermore,

CA

94551

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code:  (925) 290-4000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

_____________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.001 par value

FORM

Nasdaq Global Select Market

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐     Emerging growth company

☐    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.05.  Costs Associated with Exit or Disposal Activities.

On January 5, 2026, FormFactor, Inc. (“we”, “the Company” or “FormFactor”) adopted restructuring plans that are intended to better align cost structure and support gross margin improvement to the Company’s target financial model, while also aligning manufacturing capabilities with current and anticipated business needs and the Company's strategic priorities. As part of this restructuring plan, the Company is consolidating the manufacturing facilities located in Carlsbad, California and Baldwin Park, California. As a result, we have incurred, or expect to incur, personnel-related costs to sever or retain approximately 200 to 300 employees. We expect the actions defined under these plans will be largely completed by the end of December 2026, except facilities charges, which may extend beyond that time.

The restructuring plans are expected to result in the Company recording restructuring charges in the aggregate amount of approximately $30 to $40 million on a GAAP basis, estimated to be comprised primarily of $20 to $25 million of cost related to impairment of leasehold improvements, facility exits, and other costs, $9 to $13 million of severance, retention and other employee-related costs, and $1 to $2 million in contract and lease termination costs. Of these amounts, the Company expects the majority of the charges to be incurred in the current fiscal year.

The Company expects approximately $10 to $15 million of the charges will result in future cash expenditures and approximately $20 to $25 million in non-cash charges.

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the FormFactor’s current expectations and are subject to significant risks and uncertainties. The estimates of the charges and future cash expenditures associated with the plans are subject to a number of assumptions, and actual results may differ materially from these estimates. FormFactor may be required to revise these estimates in future periods, and such revisions could be material. FormFactor undertakes no obligation to update these forward-looking statements, except as required by law.

Item 2.06. Material Impairments.

The disclosure under Item 2.05 is incorporated by reference into this Item 2.06.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FORMFACTOR, INC.

Date:

January 08, 2026

By:

/s/ Alan Chan

Name:

Alan Chan

Title:

Senior Vice President, Chief Legal Officer and Secretary

FAQ

What restructuring actions did FormFactor (FORM) announce?

FormFactor announced restructuring plans intended to better align its cost structure and gross margins with its target financial model. The plans include consolidating its manufacturing facilities in Carlsbad, California and Baldwin Park, California and adjusting operations to match current and anticipated business needs and strategic priorities.

How many employees are affected by FormFactor’s restructuring?

FormFactor expects personnel-related actions affecting approximately 200 to 300 employees, including severance or retention measures tied to the consolidation of its California manufacturing facilities.

What total restructuring charges will FormFactor (FORM) record?

FormFactor expects to record aggregate restructuring charges of about $30 to $40 million on a GAAP basis. These charges are primarily related to impairment of leasehold improvements and facility exits, severance and other employee-related costs, and contract and lease termination costs.

How are FormFactor’s restructuring charges broken down?

The company estimates $20 to $25 million for impairment of leasehold improvements, facility exits and other costs, $9 to $13 million for severance, retention and other employee-related costs, and $1 to $2 million for contract and lease termination costs.

What portion of FormFactor’s restructuring charges are cash vs. non-cash?

FormFactor expects approximately $10 to $15 million of the restructuring charges to result in future cash expenditures, while about $20 to $25 million are expected to be non-cash charges, such as impairments.

When will FormFactor’s restructuring be completed and charges recognized?

FormFactor expects the actions under the restructuring plans to be largely completed by the end of December 2026, with facilities-related charges potentially extending beyond that time. It expects the majority of the restructuring charges to be incurred in the current fiscal year.