San Francisco-based cybersecurity company, Splunk, has recently announced that it will be laying off approximately 7 percent of its global workforce. This news comes just months before the company’s anticipated acquisition by Cisco, a global networking giant. With nearly 8,000 employees as of January, it is estimated that around 500 employees will be affected by the layoffs. Earlier this year, Splunk had already laid off nearly 300 employees.
In a letter filed with the US Securities and Exchange Commission (SEC), Splunk CEO Gary Steele explained that these layoffs are a proactive and strategic step to better align the company’s workforce and ensure sustainability and cost-effectiveness. Steele also clarified that the layoffs are not a result of the impending acquisition by Cisco but rather part of the ongoing initiatives undertaken by Splunk to streamline its resources and operating structure.
Most of the affected employees are expected to be located in the United States and will receive severance and healthcare packages. Steele assured employees that each executive leadership team member will communicate any changes to their respective teams within the next 24 hours. As part of the restructuring, Splunk anticipates incurring approximately $42 million in costs, with the majority of these expenses expected to be incurred by the end of April 2024.
The acquisition of Splunk by Cisco was announced in September and is valued at approximately $28 billion. Under the terms of the deal, Splunk’s CEO, Gary Steele, will join Cisco’s Executive Leadership Team and report directly to Cisco Chairman and CEO, Chuck Robbins. The acquisition was projected to be completed by the third quarter of 2024.
While this news may come as a disappointment to the affected employees, Splunk remains committed to delivering ongoing and incremental value to its customers. The company’s dedication to aligning its resources and operating structure is crucial for its future success in the rapidly evolving cybersecurity industry.
Sources:
– [Splunk Announces Layoffs as Cisco Acquisition Nears]
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Frequently Asked Questions (FAQs) Related to the Above News
Why is Splunk laying off employees?
Splunk is laying off employees as a proactive and strategic step to better align the company's workforce, ensure sustainability, and improve cost-effectiveness. These layoffs are not a result of the impending acquisition by Cisco but part of ongoing initiatives by Splunk to streamline its resources and operating structure.
How many employees will be affected by the layoffs?
It is estimated that around 500 employees, approximately 7 percent of Splunk's global workforce, will be affected by the layoffs.
Will the affected employees receive any support?
Yes, the affected employees, most of whom are expected to be located in the United States, will receive severance and healthcare packages to support them during the transition.
When will the affected employees receive communication about the changes?
Splunk's executive leadership team members will communicate any changes to their respective teams within the next 24 hours following the announcement.
How much will the company incur in costs due to the restructuring?
As part of the restructuring, Splunk anticipates incurring approximately $42 million in costs, with the majority of these expenses expected to be incurred by the end of April 2024.
When was the acquisition of Splunk by Cisco announced?
The acquisition of Splunk by Cisco was announced in September.
What is the value of the acquisition?
The acquisition of Splunk by Cisco is valued at approximately $28 billion.
When is the acquisition projected to be completed?
The acquisition of Splunk by Cisco is projected to be completed by the third quarter of 2024.
What position will Splunk's CEO, Gary Steele, have in Cisco?
Splunk's CEO, Gary Steele, will join Cisco's Executive Leadership Team and report directly to Cisco Chairman and CEO, Chuck Robbins.
What is Splunk's focus amidst these changes?
Splunk remains committed to delivering ongoing and incremental value to its customers despite the layoffs. The company's dedication to aligning its resources and operating structure is crucial for its future success in the rapidly evolving cybersecurity industry.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
