By Senad Karaahmetovic
Splunk (NASDAQ:SPLK) announced today that it plans to slash its global workforce by 4%. This means that about 325 employees, mostly in North America, will lose their jobs as the company continues to operate in a challenging and unpredictable macro environment.
Splunk said it expects to incur $28 million in resulting charges and future cash expenditures. The restructuring plan is expected to be completed and charges to be incurred in the first quarter of the fiscal year 2024.
"This decision is another step in a broader set of proactive organizational and strategic changes that include optimizing the Company's processes, cost structure and how the Company operates globally to ensure the Company continues to balance growth with profitability through these uncertain times and drive success over the long term," the company said in a filing.
Moreover, CEO Gary Steele said Splunk will decree its reliance on external resources, such as agencies or consultants.
"While utilizing these providers was prudent during Splunk’s early years, moving forward we will be more judicious about what work we outsource and what we will stop doing. Each organization will communicate changes that align these activities to our new cost structure," he wrote in a message to employees.
Splunk stock is trading modestly higher on Wednesday.