KVUE · 10-Q · 2026Q2 · Full report

Restructuring and Supply Chain Transformation

Kenvue Inc. · 2026-08-06 · Importance 57 · Surprise 50 · In source text

Kenvue’s Board approved the 2026 Restructuring Initiative on February 17, 2026 to optimize the operating model, transform the supply chain, reduce complexity, and improve operating efficiency. Six-month restructuring expenses increased $10 million to $130 million from $120 million, while quarterly charges were $59 million versus $60 million in the prior-year quarter. The charges primarily comprised employee-related, information-technology, and project-related costs, and six-month SG&A savings from restructuring helped reduce total SG&A by $51 million. The 2026 initiative replaced the prior-year Our Vue Forward or 2024 Multi-Year Restructuring Initiative as the source of current-period restructuring costs.

Key facts

• The 2026 Restructuring Initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million in fiscal year 2026. source
• We expect to realize annualized pre-tax gross cost savings of approximately $200 million upon completion of the 2026 Restructuring Initiative. source
• Board approved the 2026 Restructuring Initiative on February 17, 2026 source
• On February 17, 2026, our Board approved the 2026 Restructuring Initiative which aims to optimize our operating model, transform our supply chain, reduce complexity, and drive operational efficiencies. source
• Separation-related costs associated with information technology and other activities are substantially completed, but costs related to legal entity name changes and minimal other activities are expected to continue longer than originally anticipated source
• Over the life of the initiative, a majority of the pre-tax restructuring expenses and other charges are expected to be paid in cash and are expected to be funded primarily through cash flows generated from operations. source
• Restructuring expenses were $130 million for the fiscal six months ended June 28, 2026 and $120 million for the fiscal six months ended June 29, 2025, an increase of $10 million source
• Restructuring expenses were $59 million for the fiscal three months ended June 28, 2026 and $60 million for the fiscal three months ended June 29, 2025, a decrease of $1 million source

Impact estimates