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Item 2.05. Costs Associated with Exit or Disposal Activities .
On October 5, 2026, the Board of Directors of Azenta, Inc. (the “Company”) approved, and the Company committed to, a restructuring plan (the “Plan”) within the Company’s Multiomics reportable segment. The Plan is intended primarily to consolidate the Company’s North American laboratory network, simplify its organizational structure and improve operating efficiency, and consists of workforce reductions and the closure of three of the Company’s Multiomics laboratory sites in North America. The Company began notifying affected employees of the actions contemplated by the Plan on October 6, 2026.
The Company currently estimates that it will incur aggregate pre-tax charges of approximately $11.0 million to $13.0 million in connection with the Plan, consisting primarily of approximately $9.0 million of asset impairment charges described under Item 2.06 below and approximately $3.0 million of employee severance and other restructuring charges. The Company currently estimates that the aggregate future cash expenditures associated with these charges will be approximately $7.0 million.
The Company expects to recognize substantially all of the charges during the fiscal year ending September 30, 2027, and to substantially complete the actions contemplated by the Plan by March 31, 2027, subject to applicable legal and employee notice and consultation requirements. The Company expects the Plan to generate approximately $11.0 million of annualized cost savings once fully implemented.
The Plan is separate from, and in addition to, restructuring actions that the Company initiated and completed earlier in its fiscal year ending September 30, 2026, consisting of actions within its Sample Management Solutions reportable segment in August 2026 and actions within its Multiomics reportable segment in September 2026. Those earlier actions did not result in material charges, individually or in the aggregate, and the associated charges are reflected in the Company’s results for the periods in which they were incurred.
The Company may identify additional actions under the Plan as implementation proceeds and continues to evaluate other opportunities to improve its operating efficiency and cost structure. Any such additional actions would be subject to applicable internal approvals, and the Company will provide information regarding them as and when required.