Splunk to cut 4% of global workforce, mostly in North America

In a regulatory filing, Splunk said that on February 1, the company announced a plan of reorganization involving approximately 4% of the company’s global workforce, mostly in North America. 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 estimates that it will incur approximately $28M in charges and future cash expenditures in connection with the Plan, consisting primarily of cash expenditures related to severance payments, certain retention payments, employee benefits and employee transition costs, as well as non-cash charges for share-based compensation expense. The company expects predominantly all of the actions associated with the Plan to be completed, and substantially all the associated charges and cash expenditures to be incurred, in the first quarter of fiscal year 2024, subject to local law and consultation requirements.