The Splunk emblem is displayed on a telephone display screen on prime of a laptop computer keyboard on this picture taken in Krakow, Poland, on Oct. 30, 2021.
Jakub Porzycki | Nurphoto | Getty Images
Cybersecurity agency Splunk, set to be Cisco’s largest-ever acquisition, introduced Wednesday it will lay off roughly 7% of its world workforce, months forward of the deal shut.
Splunk had almost 8,000 staff as of January, in keeping with its regulatory filings, which means that round 500 staff will probably lose their jobs. The firm laid off about 300 staff earlier this 12 months.
Splunk CEO Gary Steele mentioned the firings “are not a result of our agreement with Cisco” in a letter to staff that was filed with the U.S. Securities and Exchange Commission.
Most of the laid-off staff are positioned within the U.S., in keeping with a concurrent submitting with the SEC, and can obtain unspecified severance and health-care packages. “Within the next 24 hours, each ELT member will communicate with their organization to summarize any changes to their teams,” Steele wrote.
Splunk will incur about $42 million in restructuring prices, with most occurring earlier than the tip of April 2024. The firm declined to touch upon which groups could be affected or the timing of the layoffs shortly after the acquisition announcement, and referred CNBC again to its SEC submitting.
In September, Cisco introduced it will purchase Splunk in an all-cash deal valued at $28 billion. The corporations mentioned 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 will become one of the largest software companies globally,” Robbins instructed analysts.
Layoffs have struck tech corporations massive and small over the previous 12 months. Companies equivalent to Google and Microsoft have reduce 1000’s of staff, whereas many venture-backed corporations have develop into so-called “zombie startups.”
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