Splunk Tech Firm Announces Second Major Layoff in 2023 Amid Cisco Acquisition

Despite impending acquisition by Cisco systems, Splunk CEO insists layoffs not merger-related, rather a part of "important initiatives" to streamline operations amid changing market conditions.

• Splunk, a San Francisco-based technology firm, announced it would cut around 7% of its staff, equating to roughly over 500 employees.
• Despite an impending acquisition by Cisco Systems valued at around $28 billion, Splunk CEO, Gary Steele, affirms that these layoffs are not merger-related, but rather a continuation of initiatives ongoing for a year to align resources and operations amid changing market conditions.
• The layoffs follow an earlier round in February that saw approximately 325 Splunk employees laid off, making this the second major layoff in 2023 by the company.
• The layoffs will impact employees based in the United States and internationally, with expenses in severance and associated costs expected to reach around $37 million.
• Splunk is also facing allegations of a 'frat boy culture' and pay issues outlined in a sexual harassment lawsuit, adding to the challenges the company is navigating in 2023.

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