Splunk to Cut Workforce by 7% as Cisco Acquisition Looms (2)

Splunk Inc. is cutting about 7% of its global workforce, citing an uncertain economic environment ahead of a planned acquisition by Cisco Systems Inc.

“The overall market has retracted and we expect the macro environment will continue to be unpredictable for the foreseeable future,” Chief Executive Officer Gary Steele wrote in a message to employees Wednesday.

Steele said the layoffs were not related to the recently announced deal with Cisco. The networking giant agreed to buy Splunk for $28 billion in September as it bets on software for growth.

The cuts “are the continuation of the important initiatives we’ve ...