Splunk to cut 7% of workforce, or about 500 staff, ahead of Cisco acquisition

Splunk brand displayed on a telephone display screen and a laptop computer keyboard are seen on this illustration picture taken in Krakow, Poland on October 30, 2021. (Photo by Jakub Porzycki/NurPhoto through Getty Images)

Jakub Porzycki | Nurphoto | Getty Images

Cybersecurity agency Splunk, set to be Cisco’s largest-ever acquisition, introduced Wednesday it could lay off roughly 7% of its world workforce, months ahead of the deal shut.

Splunk had practically 8,000 staff as of January, in accordance to its regulatory filings, that means that round 500 staff will seemingly lose their jobs. The firm laid off about 300 staff earlier this year.

Splunk CEO Gary Steele stated that the firings “usually are not a outcome of our settlement with Cisco” in a letter to employees that was filed with the Securities and Exchange Commission.

Most of the laid-off staff are situated within the U.S., in accordance to a concurrent filing with the SEC, and can obtain unspecified severance and healthcare packages. “Within the following 24 hours, every ELT member will talk with their group to summarize any adjustments to their groups,” Steele wrote.

Splunk will incur about $42 million in restructuring prices, with most occurring earlier than the top of April 2024. The firm declined to touch upon which groups could be impacted or the timing of the layoffs shortly after the acquisition announcement, and referred CNBC again to its SEC submitting.

In September, Cisco announced it would acquire Splunk in an all-cash deal valued at $28 billion. The firms stated the deal was anticipated to shut by the third quarter of 2024.

Shortly after the announcement, Steele and Cisco CEO Chuck Robbins mentioned the deal on a name with analysts. “Together, we are going to turn out to be one of the biggest software program firms globally,” Robbins advised analysts.

Layoffs have struck tech firms massive and small over the past 12 months. Companies like Google and Microsoft have cut 1000’s of staff, whereas many venture-backed firms have become so-called “zombie startups.”

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