Splunk slashing 7% of staff ahead of Cisco acquisition

A little more than a month after Cisco announced that it’s acquiring Splunk for approximately US$28 billion, the cybersecurity firm is trimming its headcount.

In a letter to staff that was filed with the U.S. Securities and Exchange Commission (SEC) on Nov. 1, CEO Gary Steele said the company is reducing its global workforce by approximately seven per cent.

“As we [look ahead], we are taking this proactive and strategic step that further aligns our workforce to better enable Splunkers to meet the needs of our customers and partners, while remaining sustainable and cost effective,” Steele said.

“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.”

The reduction marks Splunk’s second layoff of the year. In February, the company scaled back its staffing levels by approximately four per cent.

The latest round of cuts will mostly affect U.S. employees. It remains unclear if Canadian workers are impacted.

As of January, Splunk employed a total workforce of nearly 8,000 people, according to its regulatory filings.

Major tech layoffs continue

The latest reduction at Splunk comes amid a flurry of tech sector layoffs in 2023.

Big names, including Nokia, LinkedIn, Epic Games, Amazon, Twitch, Google, Dell, Telus, and Meta, have announced deep job cuts as they continue to navigate challenging economic conditions.

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Termination agreements for Splunk employees

As part of the layoff announcement, Steele said that Splunk will provide affected staff with “a severance package, healthcare coverage, and job placement resources to assist them through this transition.”

In a separate SEC filing, the company expects to incur approximately $42 million in restructuring costs — with most occurring before the end of April 2024.

In Canada, non-unionized employees at Splunk are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for technology industry employees
• Severance for provincially regulated employees
• Severance packages in mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.