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Splunk to lay off 4% of workforce to reduce costs

Splunk to lay off 4% of workforce to reduce costs

The data observability software provider will incur $28 million in charges on the planned downsizing plan, primarily related to severance payments.

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Data observability software provider Splunk is laying off four per cent of its workforce as part of broader measures to optimize costs and process ahead of uncertain macroeconomic conditions, a company filing with the US Securities and Exchange Commission (SEC) showed.

The decision to downsize will affect 325 employees at the company, mostly in the North America region, an email from CEO Gary Steele to employees, which was attached to the filing, showed.

“The early proactive steps we’ve taken over the past several months have minimised the scale of the changes we are making now. Unfortunately, today’s decision impacts about 325 Splunkers across the company,” Steele wrote in his email.

Splunk, which approximately has over 7,000 employees, is expected to incur a $28 million expense due to downsizing plan, primarily in cash expenditures related to severance payments among other things, the filing showed.

The company said it will support employees who have been laid off.

“For US employees, that includes severance pay, healthcare benefits, career and job placement services, the March equity vest and FY23 bonus payouts, and access and guidance to pursue other roles within Splunk,” Steele wrote in his email, adding that similar support will be offered to employees outside the US.

The decision to recalibrate and reorganise Splunk’s workforce comes at a time when technology workers continue to be laid off. In January, Google, Microsoft, Salesforce and Amazon collectively fired around 48,000 workers across the globe.

Splunk, according to Steele’s email, will continue “select recruiting” of global talent in lower-cost regions throughout the fiscal year of 2024.

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