ESTC: Elastic announces a 7% RIF and departure of CPO Ken Exner

Research evidence excerpt

ESTC: Elastic announces a 7% RIF and departure of CPO Ken Exner

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Matthew Hedberg (Head of Global TIMT

Research)

Dan Bergstrom (Analyst)

Matthew Swanson (Analyst)

Simran Biswal (AVP)

Michael Richards (AVP)

Rishi Jaluria (Analyst)

June 24, 2026

Elastic N.V.

Elastic announces a 7% RIF and departure of CPO Ken Exner

NYSE: ESTC | USD 58.71 | Outperform | Price Target USD 70.00

Sentiment: Neutral

All you need to know. In an 8-K, Elastic committed to a restructuring plan aimed at simplifying team structures, reducing

organizational complexity, and reallocating resources toward strategic growth priorities. The plan includes an approximate 7%

workforce reduction, though the company expects total headcount to grow this fiscal year as it continues hiring in customer-facing

go-to-market functions and other key areas. Management expects to incur total non-recurring cash charges of approximately

$22-25M, primarily consisting of severance and employee-related termination benefits. The substantial majority of these charges

are expected to be incurred in Q1 fiscal 2027, with the remaining charges in future periods, and workforce reductions are expected

to be substantially completed by the end of Q3 fiscal 2027, subject to variation by country based on local legal requirements.

Additionally, Chief Product Officer Ken Exner notified the company of his resignation on June 18, 2026, with his last day being

July 17, 2026. The 8-k noted "Mr. Exner will be leaving to pursue another opportunity and his resignation is not a result of

any disagreement with the Company or its board of directors, or any matter relating to the Company’s operations, policies,