On September 26, 2023, Galecto, Inc. proposed to reduce its workforce by 29 people, or approximately 70% of the company?s existing headcount. The Restructuring Plan was communicated to employees starting on September 20, 2023. The Company estimates that it will incur approximately $2.8 million in restructuring charges in connection with the restructuring, consisting of (i) approximately $2.6 million in cash-based expenses related to employee severance and notice period payments, benefits and related costs, and (ii) approximately $0.2 million in other expenses including non-cash stock-based compensation expense related to the accelerated vesting of certain share-based awards, lease commitments and legal expenses associated with the Restructuring Plan.

The Company expects that the majority of the restructuring charges will be incurred in the third quarter of 2023 and that the execution of the Restructuring Plan will be substantially complete by the end of the fourth quarter of 2023.