Splunk is engaged in offering observability services, enabling customers to monitor internal systems to protect against cybersecurity risks. Credit: Michael Vi/Shutterstock.

US-based software company Splunk has announced plans to reduce its global headcount by 7% citing uncertainty in the market.

In a statement, Splunk CEO Gary Steele said: “Today, we are making the difficult decision to reduce our global workforce by approximately 7%.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

“As we work to finish FY24 and look ahead, we are taking this proactive and strategic step that further aligns our workforce to better enable Splunkers to meet the needs of our customers and partners, while remaining sustainable and cost effective.”

The announcement comes after technology company Cisco signed a definitive agreement in September 2023, to buy Splunk in a deal valued at around $28bn.

Steele noted that the layoffs are not related to Splunk’s agreement with Cisco.

“The overall market has retracted and we expect the macro environment will continue to be unpredictable for the foreseeable future,” he said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He added that the move seeks to enhance organizational structure to drive efficiency, sustainability and bolster abilities to navigate the economic uncertainty.

Citing a May filing, Bloomberg reported that the layoffs will impact 560 people based on the headcount of 8,000 in January.

Splunk’s staff in the US will be affected the most and the company expects to take a hit of $42m from the downsizing.

“We will support those who leave Splunk by offering a severance package, healthcare coverage and job placement resources to assist them through this transition,” said Steele.

Splunk is engaged in offering observability services, enabling customers to monitor internal systems to protect against cybersecurity risks.

Cisco expects to complete Splunk’s acquisition by the third quarter of 2024.