Mesa Laboratories, Inc. (NASDAQ: MLAB) ("Mesa," "we," "us" or "our"), a global leader in the design and manufacture of critical quality control solutions and life sciences tools, today announced a savings plan (the "Savings Plan") expected to reduce annualized operating costs by approximately $9.3 million. The Savings Plan consists of a global restructuring program (the "Restructuring Program"), a reduction in our San Diego, California facility footprint and reduced third-party spending. We plan to reinvest approximately $4.3 million of the savings into the business to drive profitable growth, for a net annualized cost reduction of approximately $5.0 million.
We estimate that the Restructuring Program will result in total pre-tax charges of approximately $2.6 million to $3.4 million, primarily during the second half of fiscal year 2027. These charges are expected to consist primarily of employee-related costs of approximately $2.3 million to $3.0 million, net of an expected non-cash reversal of approximately $0.3 million of previously recognized stock-based compensation expense, and other exit costs, including third-party costs to administer these exits, of approximately $0.3 million to $0.4 million. We expect related cash expenditures of approximately $2.9 million to $3.7 million, substantially all of which will occur over the next 12 months.
We expect the Savings Plan to be fully reflected in our annualized cost structure by the end of fiscal year 2028, at a net annualized cost reduction of approximately $5.0 million after the reinvestment described above. These figures reflect cost reductions only; they exclude the expected decrease in Clinical Genomics revenue and increase in its gross profit percentage described above.