{"url_path":"/sec/pega/8-k/2026-01-12/item-2-05","section_key":"item-2-05","section_title":"Item 2.05 Costs Associated with Exit or Disposal Activities","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-01-12","source_url":"https://www.sec.gov/Archives/edgar/data/1013857/0001013857-26-000009-index.html","accession_number":"0001013857-26-000009","cik":"0001013857","ticker":"PEGA","issuer_name":"PEGASYSTEMS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1013857/0001013857-26-000009-index.html","primary_entity_key":"0001013857","primary_entity_name":"PEGASYSTEMS INC"},"word_count":255,"has_tables":true,"body_markdown":"Item 2.05. Costs Associated with Exit or Disposal Activities\n\nAI is altering how quickly ideas can move from concept to reality, and raising client expectations for speed, precision, and results, transforming not just how Pegasystems builds, but how we deliver value with reliability and scale.\n\nTo better align roles and capacity to an AI-first delivery model and to support our 2026 priorities, on January 7, 2026, Pegasystems Inc. (the “Company”) committed to making organizational changes, primarily impacting the Consulting organization. This includes some role eliminations and reorganization. The Company has begun notifying affected employees, and communications to impacted persons or their representatives are expected to be substantially completed in the first quarter of 2026. The Company expects to incur a charge of approximately $13 million in the fourth quarter of 2025 related principally to cash severance and related benefit costs for terminated employees.\n\nThis report contains statements about our future expectations, plans, and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, including anticipated charges in connection with the reduction in force, our estimated restructuring costs, and the timing of these costs. Forward-looking projections and expectations are inherently uncertain, and our actual results may differ materially from those indicated by the forward-looking statements in this document as a result of various important factors, including but not limited to flaws in the assumptions and judgments upon which our forecasts and estimates are based and our ability to execute on our strategy."}