In June 2021 private equity giant Silver Lake made a $1 billion convertible investment in the company and in early 2022 private equity firm Hellman & Friedman bought a 7.5 percent stake in Splunk. In October activist investor Starboard Value announced that it had acquired a stake in Splunk of just under 5 percent. Splunk’s shares closed at $106.99 Thursday, up 7.2 percent for the day and up more than 11 percent from Wednesday’s $96.15 opening price before the company’s SEC filing. The company also significantly cut its net losses to $546.7 million in the first three quarters of fiscal 2023 from $1.20 billion in the first three quarters of fiscal 2022. 31, 2022) of fiscal 2023 Splunk reported revenue of just over $2.40 billion, up nearly 36 percent from $1.77 billion in the first three quarters of fiscal 2022. News of the layoffs come as Splunk just closed out its fourth quarter and fiscal 2023 on Tuesday, Jan. The note also said that Splunk will decrease its reliance on “external resources,” such as agencies and consultants, to reduce costs. At the same time, we will continually assess our organizational health, where and how we work, and how we deploy our team and resources to deliver customer and shareholder value,” Steele said. This will include the select recruiting of new Splunkers in FY24, consistent with our focus on accessing global talent in lower-cost areas. “Looking ahead, we will continue to invest in the areas that got us to where we are today – including how we engage with customers, our innovation and our talent. I want to express my gratitude for the important contributions they’ve made to Splunk and to our customers,” he said. “The people leaving the company are our fellow Splunkers, our friends, and have helped drive our success. Since I joined the company, I’ve often heard the phrase ‘once a Splunker always a Splunker.’ That statement couldn’t be more true than it is today,” Steel said in his note. “Decisions of this nature have a significant human impact, and I don’t take that lightly. The company expects to complete the layoffs in the current fiscal quarter that ends April 30. The company estimates that it will incur approximately $28 million in charges and cash expenditures to cover the costs of the layoffs, including severance payments, employee retention and transition costs, and other expenses. Unfortunately, today’s decision impacts about 325 Splunkers across the company,” his note said. “The early proactive steps we’ve taken over the past several months have minimized the scale of the changes we are making now. “This decision is another step in a broader set of proactive organizational and strategic changes that include optimizing our processes, cost structure and how we operate globally to ensure Splunk continues to balance growth with profitability through these uncertain times and drive success over the long term,” Steele said. “Today, we are making the difficult decision to reduce our global workforce by approximately 4, mostly in North America,” Splunk president and CEO Gary Steele said in a note sent to Splunk employees on Wednesday and included with the SEC filing. In a Form 8-K filing with the SEC on Wednesday, Splunk disclosed a reorganization plan that will cut approximately 4 percent of the company’s global workforce, with most of the layoffs in North America. Other major companies that have instituted layoffs include SAP (about 3,000 jobs), IBM (about 3,900 workers), and Microsoft (10,000 jobs). Just this week NetApp said it is laying off about 8 percent of its global workforce while earlier today Okta informed its employees of plans to cut about 5 percent of its workforce. Splunk, headquartered in San Francisco, becomes the latest IT industry to undertake employee cutbacks in recent weeks. Splunk is laying off about 4 percent of its workforce or about 325 employees, the unified security and observability platform developer disclosed in a filing with the U.S.
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