Splunk (NASDAQ:SPLK) layoffs are on the way for the cybersecurity company’s employees as it enacts a restructuring plan.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Splunk is planning layoffs that will affect 7% of its global workforce. The company notes in this filing that the majority of its job cuts will affect employees in the United States.
Splunk says that these job cuts will result in it suffering $42 million in charges. That includes $37 million in cash connected to severance pay and other charges, as well as $5 million in non-cash charges for share compensation expenses.
Splunk, which is preparing to be acquired by Cisco (NASDAQ:CSCO), notes these job cuts aren’t part of that deal. Here’s what the company’s CEO said in a letter to employees:
“The changes we are announcing are not a result of our agreement with Cisco; they are the continuation of the important initiatives we’ve undertaken across Splunk for more than a year to align our resources and operating structure to deliver ongoing and incremental value for our customers.”
Timing of the Splunk Layoffs
The filing from Splunk notes that the company is expecting to suffer all of the charges connected to the layoffs by April 30, 2024. That means jobs are expected to be cut between now and then.
SPLK stock is down slightly as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
