Traeger Launches Phase 2 Of Project Gravity, Expects $25M-31M In Pre-Tax Charges And $58M In Annualized Savings; The Board Approved A Reduction In Force To Align Workforce Size With The Co's Current Operational Scale, Will Result In ~$8M Of Additional Annualized Pre-Tax Cost Savings.

As previously disclosed in a Current Report on Form 8-K filed on May 15, 2025 (the "May 8-K") and an amended Current Report on Form 8-K filed on August 6, 2025 (the "August 8-K") and November 5, 2025 (the "November 8-K"), the Board of Directors (the "Board") of Traeger, Inc. (the "Company") approved a comprehensive enterprise initiative designed to streamline the Company's organizational structure and rebalance its cost base to improve profitability and cash flow generation. As part of this initiative, the Company is identifying opportunities to deliver operational efficiencies and cost savings which are expected to be achieved through a multi-step strategic optimization plan ("Project Gravity").

 

Phase 1 of Project Gravity focused on centralizing the Company's operations, while Phase 2 introduced additional strategic actions related to channel optimization initiatives. These Phase 2 actions include discontinuing the Costco roadshow program, redirecting Traeger.com consumers to the Company's retail partners' websites as part of an exit from the Traeger direct-to-consumer business, transitioning to a distributor model in European markets that currently operate under a direct model, and pellet mill consolidation. As a result of these Phase 2 actions, on December 4, 2025, the Board approved a reduction in force to align workforce size with the Company's current operational scale. This action will result in approximately $8 million of additional annualized pre-tax cost savings.

 

In connection with these developments under Phase 2 of Project Gravity, the Company is revising its expected range of pre-tax charges. The Company now anticipates incurring total pre-tax charges related to currently known and reasonably estimable actions of Project Gravity of between approximately $25.0 million and $31.0 million (the "Total Costs"), which primarily consist of cash expenditures. Of the Total Costs, the Company expects pre-tax charges of between approximately $16.0 million and $21.0 million associated with professional fees and other related costs, and between approximately $9.0 million and $10.0 million related to severance and other personnel costs. The current expectation is that Project Gravity will result in annualized pre-tax cost savings of approximately $58 million, with Phase 1 and Phase 2 expected to contribute approximately $30 million and $28 million, respectively.