Splunk brand displayed on a telephone display and a laptop computer keyboard are seen on this illustration photograph taken in Krakow, Poland on October 30, 2021. (Picture by Jakub Porzycki/NurPhoto by way of Getty Photos)
Jakub Porzycki | Nurphoto | Getty Photos
Cybersecurity agency Splunk, set to be Cisco’s largest-ever acquisition, introduced Wednesday it could lay off roughly 7% of its international workforce, months forward of the deal shut.
Splunk had practically 8,000 workers as of January, in keeping with its regulatory filings, that means that round 500 workers will seemingly lose their jobs. The corporate laid off about 300 workers earlier this yr.
Splunk CEO Gary Steele stated that the firings “will not be a results of our settlement with Cisco” in a letter to workers that was filed with the Securities and Trade Fee.
A lot of the laid-off workers are situated within the U.S., in keeping with a concurrent submitting with the SEC, and can obtain unspecified severance and healthcare packages. “Throughout the subsequent 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.
In September, Cisco introduced it could purchase Splunk in an all-cash deal valued at $28 billion. The businesses 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. “Collectively, we are going to turn out to be one of many largest software program firms globally,” Robbins instructed analysts.
Layoffs have struck tech firms massive and small over the past yr. Corporations like Google and Microsoft have reduce hundreds of workers, whereas many venture-backed firms have turn out to be so-called “zombie startups.”
Splunk didn’t instantly return CNBC’s request for remark.
