Splunk (NASDAQ:SPLK) is the latest technology firm to announce layoffs, with plans to reduce ~4% of its global workforce, mostly in North America, as part of a reorganization to optimize its processes and cost structure.
The job cuts will impact around 325 people.
The software firm expects to incur around $28M in charges and future cash expenditures in connection with the plan. All actions associated with the reorganization and the charges are likely to complete in the first quarter of fiscal year 2024.
In a note to employees, CEO Gary Steele stated, “The early proactive steps we’ve taken over the past several months have minimized the scale of the changes we are making now. Unfortunately, today’s decision impacts about 325 Splunkers across the company. [..] we will support these colleagues through this process in a variety of ways..”
The company also plans to reduce its reliance on external resources as part of its cost-reduction efforts.
“Looking ahead, we will continue to invest in the areas that got us to where we are today – including how we engage with customers, our innovation and our talent. This will include the select recruiting of new Splunkers in FY24, consistent with our focus on accessing global talent in lower-cost areas. At the same time, we will continually assess our organizational health, where and how we work, and how we deploy our team and resources to deliver customer and shareholder value,” Steele added.
Shares of the software firm opened trading around 1% higher