Cybersecurity firm Splunk to cut 7% of staff ahead of Cisco acquisition
US-based cybersecurity company Splunk has announced to lay off about 7 per cent of its global workforce, just months ahead of its acquisition by global networking giant Cisco.
San Francisco, Nov 2 US-based cybersecurity company Splunk has announced to lay off about 7 per cent of its global workforce, just months ahead of its acquisition by global networking giant Cisco.
According to Splunk's regulatory filings, it had nearly 8,000 employees as of January, meaning around 500 employees will likely lose their jobs.
The company laid off nearly 300 employees earlier this year.
"As we work to finish FY24 and look ahead, we are taking this proactive and strategic step that further aligns our workforce to better enable Splunkers to meet the needs of our customers and partners, while remaining sustainable and cost-effective," Splunk CEO Gary Steele said in a letter to employees filed with the US Securities and Exchange Commission (SEC).
He also mentioned that the layoffs "are not a result of our agreement with Cisco; they are the continuation of the important initiatives we’ve undertaken across Splunk for more than a year to align our resources and operating structure to deliver ongoing and incremental value for our customers".
According to the SEC filing, most of the laid-off employees are located in the US and will receive unspecified severance and healthcare packages.
"Within the next 24 hours, each ELT member will communicate with their organization to summarise any changes to their teams," Steele wrote.
Splunk expects to spend $42 million in restructuring costs, with most incurred by the end of April 2024.
In September, Cisco announced to acquire Splunk for about $28 billion in the generative AI era. Upon the close of the acquisition, Splunk’s CEO, Gary Steele, will join Cisco’s Executive Leadership Team, reporting to Cisco Chairman and CEO Chuck Robbins. The deal was expected to be completed by the third quarter of 2024, according to the companies.