Move will impact about 325 Splunk employees
Splunk Inc. intends to lay off about 4% of its staff as cutbacks in the software industry intensify.
The move will impact about 325 employees at Splunk (SPLK), mainly in North America.
"This decision is another step in a broader set of proactive organizational and strategic changes that include optimizing our processes, cost structure and how we operate globally to ensure Splunk continues to balance growth with profitability through these uncertain times and drive success over the long term," Chief Executive Gary Steele said in a note to employees that was also filed with the Securities and Exchange Commission.
Steele said that Splunk's "proactive steps" in recent months "have minimized the scale of the changes we are making now."
The company previously set out to reduce its reliance on "external resources" like agencies and consultants. Going forward, the company will be "more judicious about what work we outsource and what we will stop doing," according to Steele's note.
Splunk plans to notify employees today if their roles will be affected.
The company expects to incur about $28 million in charges and future expenditures related to its "reorganization" plan, it said in an SEC filing. Splunk anticipates that it will book "substantially all" of these charges in the first quarter of fiscal 2024.
Splunk's layoff announcement follows other recent ones from fellow software companies Salesforce Inc. (CRM), Workday Inc. (WDAY), and SAP SE (SAP.XE). The cuts are also part of a wave hitting the tech sector more broadly.
See also: PayPal joins IBM, SAP, Spotify, Google, Intel, Microsoft, Amazon and other major companies laying off thousands of people