Splunk, a cybersecurity and cloud software company, announced on Wednesday that it would be laying off nearly 7% of its workforce, or about 560 employees. The layoffs come as the company looks to reduce costs amid an uncertain macroeconomic environment.
In an email to employees, CEO Gary Steele said that the overall market has retracted and that the company expects the macro environment to continue to be unpredictable for the foreseeable future.
Steele also said that the layoffs are unrelated to Cisco’s acquisition of Splunk, which was announced in September.
The layoffs are expected to affect employees across all levels and functions at Splunk. The company has said that it will be providing severance packages and other assistance to affected employees.
Splunk is the latest in a string of tech companies to announce layoffs in recent months. Other companies that have announced layoffs include Meta, Twitter, and Netflix.
The layoffs at Splunk are a sign of the challenges that the tech industry is facing as it grapples with a slowdown in economic growth and rising inflation.
