Splunk unveils plan to cut about 7% of its global workforce

Splunk Inc.
SPLK,
-0.19%
said Wednesday it’s planning to cut about 7% of its global workforce, mostly in the U.S. The company had 8,000 employees as of Jan. 31, according to its most recent annual report, suggesting about 560 employees will be cut. The software company expects to book charges of about $42 million for severance and other costs, as well as about $5 million in non-cash charges for share-based compensation expense, it said in a regulatory filing. Most of the actions are expected to be completed and charges booked by April 30 of 2024. “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,” Chief Executive Gary Steele said in a letter announcing the plan. The company is currently in the midst of being acquired by Cisco
CSCO,
+0.12%.
The stock has gained 72% in the year to date, while the S&P 500
SPX,
+1.05%
has gained 9%.