CEO Gary Steele revealed in a message to employees that Splunk will reduce 7% of its global staff, prior to the conclusion of its proposed $28 billion acquisition by Cisco - the largest it has ever made. He clarified that the dismissals were not caused by the Cisco deal.
Splunk, a cybersecurity firm that's set to become Cisco's largest-ever acquisition, reported Wednesday it would be laying off approximately 7% of its global workforce--which comes to around 500 employees. This follows the 300 employees that were let go earlier this year. CEO Gary Steele made it clear in a letter to employees that these layoffs are not related to their agreement with Cisco. The filings indicate that the majority of these workers are based in the U.S., and they will each receive a severance and health-care package. The restructuring is estimated to cost $42 million prior to the acquisition's close in the third quarter of 2024. After the announcement, Steele and Cisco CEO Chuck Robbins spoke to analysts, and Robbins expressed enthusiasm about the deal, noting that the "combined firm will become one of the largest software companies globally." Numerous tech companies of various sizes have had to make staff cuts in the last year, and some startups have become "zombie startups."
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