Movella Holdings Inc. announced that due to market conditions, on August 31, 2023, the company reduced its number of employees by approximately 20%. The company expects to substantially complete this workforce reduction in the third quarter of 2023. Additionally, the company elected to restructure its operations by exiting certain non-core business activities.

As a result of this workforce reduction and restructuring, the company expects to incur a pre-tax cash charge for severance and restructuring costs which consists of one-time termination benefits and contract termination costs, of between approximately $1.1 million and $1.6 million in the third quarter of 2023. The company expects to achieve cost savings of approximately $2.0 million per quarter following this action.