Eargo adopts cost reduction plan impacting 32-42% of employees

On June 23, the Board of Directors of Eargo approved a cost reduction plan intended to optimize the Company’s cost structure and operating model that the Company expects will be implemented through the end of fiscal 2023. The plan is expected to impact approximately 90-120 employees, or approximately 32-42% of the Company’s workforce. The Company estimates that it will incur non-recurring charges of approximately $5.0-$7M in connection with the plan, primarily consisting of one-time employee termination costs such as severance payments, notice pay, employee benefits contribution and related costs, as well as the potential impairment of certain intangible and other assets.