San Francisco, CA – November 2, 2023 – Splunk, a large tech firm headquartered in San Francisco, is laying off hundreds of workers for the second time this year. The layoffs come as Splunk is in the midst of a $28 billion sale to Cisco.
In a letter to employees, CEO Gary Steele wrote that approximately 7% of the company’s global workforce would be laid off, around 500 employees. Steele said that the layoffs were necessary to “align our resources and operating structure” and were not related to the Cisco acquisition.
The layoffs are the latest in a series of cuts at tech companies in recent months. Many companies are citing the uncertain economic environment as a reason for the layoffs.
Splunk’s layoffs are the second round of cuts for the company this year. In February, Splunk laid off about 325 employees.
The layoffs come at a time when Splunk is preparing for its acquisition by Cisco. The deal, which was announced in September, is expected to close in the third quarter of 2024.
It is not clear which departments or regions will be affected by the latest round of layoffs. However, Splunk has said that the majority of the layoffs will be in the United States.
The layoffs are a blow to Splunk’s workforce. The company had about 8,000 employees at the end of January. With the latest round of layoffs, Splunk’s workforce will be reduced by about 10%.
The layoffs are also a sign of the challenges facing the tech industry. Many tech companies are facing rising costs and slowing revenue growth. As a result, many companies are cutting costs and laying off workers.
It remains to be seen how the layoffs will impact Splunk’s business. However, the layoffs are a reminder of the uncertain economic environment facing the tech industry.