AKAM · 10-Q · 2026Q2 · Full report

Headcount / Restructuring

AKAMAI TECHNOLOGIES INC · 2026-08-07 · Importance 54 · Surprise 74 · In source text

Second-quarter restructuring charges were $1.8 million, down 41% from $3.1 million in the second quarter of 2025, while first-half charges were $2.0 million, down 42% from $3.5 million. The 2026 charges arose from an action initiated in the fourth quarter of 2025 to align investments and simplify the organizational structure around long-term growth priorities, together with acquisition-related actions. The 2025 comparison-period charges included severance for headcount reductions and impairments of capitalized internal-use software, and Akamai does not expect material additional charges from either program.

Key facts

• Company expects stock-based compensation to increase during remainder of 2026 as a result of a new benefit that reduced the service period for retirement eligible employees source
• Company initiated restructuring actions during fourth quarter of 2025 and does not expect to incur material additional charges related to these actions source
• Company redesigned some compensation programs by shifting certain plans from cash-based to stock-based, such as 401(k) matching program in 2025, and introduced a new retirement benefit in 2026 which increased stock-based compensation source
• Three months ended June 30, 2026 Restructuring charge: $1,825 (in thousands) source
• Six months ended June 30, 2026 Restructuring charge: $2,008 (in thousands) source
• The decrease in cash provided by operating activities for the six months ended June 30, 2026, as compared to the same period in 2025, was due to higher payroll and related costs due to increased headcount. source

Impact estimates