AVY · 10-Q · 2026Q2 · Full report
Headcount / Restructuring
Avery Dennison Corp · 2026-08-04 · Importance 46 · Surprise 42 · From source text
Avery Dennison recorded $34.7 million of restructuring charges for 2026 actions during the six months ended June 30, 2026. The actions reduced approximately 600 positions and included severance, related costs, and asset impairments at various locations. Six-month restructuring charges included $30.7 million of severance and related costs and $3.7 million of asset impairment and lease-cancellation charges, compared with $12.6 million and $0.3 million, respectively, in the prior-year period. Management expects incremental savings from the restructuring actions, net of transition costs, but reported $38.9 million of total other expense compared with $20.4 million a year earlier.
Key facts
- Severance and related costs, net of reversals, for the six months ended June 30, 2026: $30.7 million (and $12.6 million for the six months ended June 28, 2025). source
- Severance and related costs, net of reversals, included in other expense (income), net for the three months ended June 30, 2026: $16.2 million (and $7.9 million for the three months ended June 28, 2025). source
- Asset impairment and lease cancellation charges included in other expense (income), net for the three months ended June 30, 2026: $2.4 million (and $0.1 million for the three months ended June 28, 2025). source
- Asset impairment and lease cancellation charges for the six months ended June 30, 2026: $3.7 million (and $0.3 million for the six months ended June 28, 2025). source
- The restructuring charges during the six months ended June 30, 2026 consisted of severance and related costs for the reduction of approximately 600 positions, as well as asset impairment charges. source
- Company anticipates incremental savings from restructuring actions, net of transition costs, will contribute to 2026 results. source
- We recorded $34.7 million in restructuring charges during the six months ended June 30, 2026 related to our 2026 actions. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -0.7% | Severance and related costs, net of reversals, for the six months ended June 30, 2026: $30.7 million (and $12.6 million for the six months… |
| operating_income | negative | realized | -0.1% | Asset impairment and lease cancellation charges for the six months ended June 30, 2026: $3.7 million (and $0.3 million for the six months… |