Costs Associated with Exit/Disposal - Form 8-K

Item 2.05 Costs Associated with Exit or Disposal Activities.

On September 29, 2023, the Board of Directors (the "Board") of SQZ Biotechnologies Company (the "Company") approved a reduction in the Company's workforce by approximately eighty percent (the "Workforce Reduction"). The decision was based on cost-reduction initiatives intended to reduce the Company's ongoing operating expenses while it pursues strategic alternatives. The Company expects to continue to treat currently enrolled patients in its enhanced antigen presenting cell (eAPC) and activating antigen carriers (AAC) programs in HPV16+ tumors.

The Company currently estimates that it will incur approximately $1.5 million in charges in connection with the Workforce Reduction, primarily consisting of employee-related benefits and related costs including continuation of group health insurance coverage for a specified period to the affected employees, approximately $100,000 of which is anticipated to result in cash expenditures. The Company expects that the majority of these charges will be incurred in the third quarter of 2023. The charges the Company expects to incur are subject to assumptions, and actual charges may differ from the amount disclosed in this Current Report on Form 8-K.