Arena Group implementing reduction of about one-third of current workforce

In a regulatory filing, Arena Group disclosed that on January 18, the company announced a plan to manage its operating expenses by implementing a reduction of approximately one-third of its current workforce. The plan is intended to reduce the company’s operating expenses in response to challenging macroeconomic conditions and the termination of the Licensing Agreement, as also disclosed in the filing. Where required, worker adjustment and retraining notification, or “WARN,” shall be given, the company noted. In connection with these actions, the company estimates that it will incur approximately $5M-$7M in total restructuring charges, the substantial majority of which are future cash-based expenditures and substantially all of which are related to, employee severance, including WARN notice, and other termination benefits. The company expects to execute the plan and recognize substantially all of these charges in the first two quarters of 2024.