Cisco Acquisition Target Splunk to Cut 500 Jobs in the US - Here's How Much It Will Cost Them

Splunk Inc SPLK looks to slash 7% of its global workforce, mainly in the U.S., under its latest restructuring plan.

The big data platform expects to incur approximately $42 million in charges, consisting of $37 million in future cash expenditures in connection with the restructuring and $5 million in non-cash payments for share-based compensation expenses. 

Splunk expects all of the actions associated with the Plan to be completed by April 30, 2024.

In September, Cisco Systems, Inc CSCO agreed to acquire Splunk for $157 per share in cash, representing approximately $28 billion in equity value, implying a premium of 31.3%. The transaction will likely close by the end of the third quarter 2024, subject to regulatory approval.

Splunk had nearly 8,000 employees in January, implying that around 500 would likely lose their jobs. The company laid off about 300 employees earlier in 2023.

Price Actions: SPLK shares traded lower by 0.27% at $146.77 on the last check Wednesday.