During the fourth quarter of 2024, we completed a detailed review of our strategy and made several decisions that would narrow and intensify our focus on our U.S. PEO business. This includes winding down the software-only HRIS product as well as other immaterial products not directly related to our U.S. PEO business. In place of our software-only HRIS product, we now focus our ASO services to include both the software component, but also a significant service component similar to the types of services we provide to PEO clients.

In conjunction with this adjustment to our product offerings, we have implemented changes to our operating expense structure, including reductions to our U.S. staffing and office footprint.

In the first half of 2026, we realigned responsibilities within our management structure and reduced our U.S. workforce to better align with our current level of clients and WSEs.

As part of these restructuring initiatives, the Company incurred the charges shown in the following table. These expenses are classified in G&A in our condensed consolidated statement of income and comprehensive income.


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Cash restructuring costs:
Severance costs	$	(1)	$	2	$	12	$	2
Professional fees	—		—		1		—
Total cash restructuring costs	(1)		2		13		2

Non-cash restructuring costs:

Intangible asset and goodwill impairments	—		—		—		1

Total non-cash restructuring costs	—		—		—		1
Total restructuring costs	$	(1)	$	2	$	13	$	3

Severance costs include payments to colleagues, estimated reimbursements for COBRA payments and outplacement services. The following table is a summary of changes in accrued severance and exit and disposal costs included within accounts payable and other current liabilities and accrued wages:


(in millions)	Accounts payable and other current liabilities		Accrued wages
Balance at December 31, 2025	$	1	$	10
(+) Additions	—		12
(-) Payments	—		(15)

Balance at June 30, 2026	$	1	$	7

We expect the restructuring efforts to continue through 2026 and may recognize additional expenses as they are incurred.