ADP · 10-K · 2026A · Full report

Headcount / Restructuring

AUTOMATIC DATA PROCESSING INC · 2026-08-05 · Importance 34 · Surprise 42

ADP recorded a $91.1 million charge in the fourth quarter of fiscal 2026 for a corporate-led business alignment program. The program included $89.1 million of severance costs and $2.0 million of strategic project costs, primarily external advisory fees. Management designed the program to align resources with strategic priorities and streamline the organizational structure. The charge was excluded from adjusted net earnings, reducing comparability between GAAP and adjusted results.

Key facts

• In Q4 2026 the company incurred a charge of $91.1 million for a corporate-led business alignment program, including $89.1 million of severance and $2.0 million of strategic project costs source