Splunk Layoffs 7% of it’s workforce
In a bold and surprising move, the cybersecurity powerhouse Splunk, poised to be the crown jewel of Cisco’s acquisitions, made a significant announcement on a Wednesday that sent shockwaves through the tech industry. The company disclosed its intention to trim its global workforce by approximately 7% ahead of the impending merger.
How does Splunk plan to reshape its workforce before the merger with Cisco?
Splunk, which boasted nearly 8,000 employees in its ranks as of January, is gearing up for some substantial restructuring. This means that around 500 individuals within the Splunk family will face uncertain professional futures. It’s important to note that this isn’t the first time this year that the company has wielded the layoff axe, having already let go of about 300 employees earlier in the year.
This announcement comes hot on the heels of Cisco’s proclamation in September of its audacious all-cash acquisition of Splunk, a deal valued at a staggering $28 billion. The companies had initially anticipated sealing the deal by the third quarter of 2024, with both Splunk CEO Gary Steele and Cisco CEO Chuck Robbins beaming with confidence during a call with industry analysts. Robbins boldly stated, “Together, we will become one of the largest software companies globally.”
In a candid letter addressed to the company’s employees, Steele made it explicitly clear that these layoffs are not a consequence of the forthcoming merger with Cisco. This assertion was formally filed with the U.S. Securities and Exchange Commission, leaving no room for speculation.
What is the financial impact of Splunk’s restructuring plan?
While the majority those affected by these job cuts are in the United States, it is unclear how this restructure will impact Canadian employees. These employees will receive severance packages, the specifics of which have not been disclosed. To add a sense of urgency to the situation, Steele announced that within the next 24 hours, each executive leadership team member would reach out to their respective teams, summarizing any impending changes.
This strategic maneuver is set to cost Splunk roughly $42 million in restructuring expenses, with a substantial portion slated for realization before April 2024. Curiously, the company chose to remain mum on the details regarding which departments or teams would bear the brunt of the layoffs, directing inquiries back to their SEC filing.
Severance pay for Splunk’s employees
In Canada, Splunk employees facing layoffs may be eligible for severance pay of up to 24 months, contingent on various factors. Severance pay in Ontario serves as compensation for non-unionized workers who are terminated without just cause. Even if an employee’s termination is deemed to be for cause, there may still be a potential entitlement to full severance pay.
Navigating the complexities of job loss and termination can be a stressful ordeal. The seasoned team of employment lawyers at Whitten & Lublin is poised help with some of that stress by guiding you through the legal intricacies and ensure that you receive the compensation you rightfully deserve. In light of recent layoffs across Canada, we urge those affected to reach out for a consultation. Booking is simple and can be arranged online or by phone at (416) 640 2667.