By Rob Curran

Cybersecurity company Splunk, which recently agreed to a buyout from network giant Cisco Systems, unveiled a plan to lay off about 7% of its employees, mostly in the U.S.

Splunk said it would book roughly $42 million in charges on severance payments and other issues related to the layoffs.

In a letter addressed to "All Splunkers," President and Chief Executive Gary Steele outlined the reasoning for the layoffs.

"As we work to finish [fiscal 2024] 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," said Steele, in the letter.

"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," Steele wrote.

For the quarter ended in April, Splunk took a $29.1 million charge related to a previous 4% reduction of its workforce.

Write to Rob Curran at rob.curran@wsj.com

(END) Dow Jones Newswires

November 01, 2023 09:30 ET (13:30 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
Splunk (NASDAQ:SPLK)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Splunk Charts.
Splunk (NASDAQ:SPLK)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Splunk Charts.