back to article Splunk sheds 7% of workers amid Cisco's $28B embrace

Enterprise analytics software specialist Splunk, which Cisco plans to purchase for $28 billion, has decided it needs to lay off 7 percent of the workforce. The company revealed the plan in an SEC filing that said the job cuts would mostly affect staff in the US, and would cost around $42 million due to severance payouts, …

  1. Nate Amsden

    saw an interesting comment from a person on linkedin a month ago, unsure if the info came directly from them or if they quoted another source

    "Since its inception, Splunk has incurred net losses yearly, resulting in an accumulated deficit of $4.05 billion. Splunk has bet its future on costly cloud services that require continual infrastructure investments. Splunk’s $3.099 billion in debt exceeds its annual revenue. "

    Which surprised me, I assumed Splunk was doing much better than continuing to make losses every year since they started, hard to imagine what they could do to get that debt under control in that situation(other than get bought I suppose).

    1. Michael Hoffmann Silver badge

      I'm surprised as well. Being the huge gorilla in the room with notorious pricing, I would have thought they're absolutely minting it. And being that gorilla, you'd think they could also turn around and get the sweetest deals to lower infrastructure cost.

      1. damienblackburn

        Yeah, the pricing is what gets them. They charge based upon the amount you ingest, and those prices are sky-high. With the push to cloud, that basically kills their model as many providers have internal tools for log consumption and searching, like AWS' Central Logging, so there's no point to pay for a cloud application. If you want to do on-prem or do data analytics, there's tools like ELK and more.

    2. sanmigueelbeer

      If I google the sentence "Splunk’s $3.099 billion in debt exceeds its annual revenue." one of the links is this: Did Cisco Save Splunk?

  2. Anonymous Coward
    Anonymous Coward

    "The move isn't a result of the pending Cisco acquisition" when it very much is the result of the Cisco acquisition. Its the opposite game just 180 degree reverse what Exec leadership says... if not now it was bound to happen when Splunk is assimilated into the Borg

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