Item 2.05. Costs Associated with Exit or Disposal Activities.
On December 4, 2024, the Board of Directors of MaxCyte, Inc. approved a workforce reduction plan (the “Plan”) as part of the Company’s ongoing efforts to streamline operations, improve cost structure, and align resources with strategic priorities. The Plan is expected to result in a reduction of approximately 15% of the Company’s workforce globally, which includes both directly employed personnel and individuals engaged through third-party employer-of-record (EOR) arrangements.
In connection with the Plan, the Company estimates that it will incur total pre-tax charges of approximately $0.8 million, consisting primarily of severance payments, employee benefits, and related costs. These charges include costs associated with directly employed personnel as well as reimbursements to third-party providers for severance obligations related to EOR-employed individuals. The Company expects to record these charges primarily in the fourth quarter of 2024, with approximately $0.3 million resulting in future cash expenditures.
The Company anticipates that the implementation of the Plan will be substantially completed in December 2024. The Company expects the workforce reduction to result in annualized cost savings of approximately $5.8 million, which will begin to be realized starting in January 2025.
Forward-looking statements in this Current Report on Form 8-K, including those regarding the expected timing, costs, and savings related to the Plan, are subject to risks and uncertainties. These risks include, but are not limited to, the Company’s ability to complete the workforce reduction as planned and achieve the anticipated benefits related thereto. Risks and uncertainties related to our business are described in greater detail in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 12, 2024, as well as in discussions of potential risks, uncertainties, and other important factors in the other filings that we make with the Securities and Exchange Commission from time to time, including in our Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 6, 2024.
Item 7.01. Regulation FD Disclosure.
On December 9, 2024, the Company issued a press release announcing the Plan. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits