Splunk Layoffs to Impact 4% of Company's Global Workforce

Splunk is another in a long line of tech companies initiating layoffs. These will affect approximately 325 employees, or 4% of its global workforce, starting Wednesday (today), the beginning of its 2024 fiscal year. Most of the cuts at the enterprise software provider will impact employees in North America.

The company is taking a broader set of proactive organizational and strategic changes. These include optimizing processes, cost structure and how the company operates globally. This is to ensure that the organization continues to balance growth with profitability through uncertain times, the company said.

It will also reduce the use of external agencies and consultants in its cost-cutting measures.

Splunk’s Gary Steele

Gary Steele is president and CEO at Splunk. He noted that the layoffs are a difficult decision.

“Decisions of this nature have a significant human impact, and I don’t take that lightly,” Steele said, whose remarks were part of an SEC filing. “The people leaving the company are our fellow Splunkers, our friends, and have helped drive our success. I want to express my gratitude for the important contributions they’ve made to Splunk and to our customers.”

However, layoffs don’t mean Splunk isn’t in the business of hiring. There will be the select recruiting of new employees this year, consistent with the company’s focus on accessing global talent in lower-cost areas, Steele said.

Splunk’s layoff announcement follows other recent ones from major software players, including Salesforce and SAP.