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February 1, 2024
Okta layoffs will cost 400 employees their jobs as part of a restructuring plan. The move comes a year after the identity and access management company announced it was shedding 300 workers primarily due to overhiring.
Okta disclosed the latest layoffs in a U.S. Securities and Exchange Commission (SEC) filing. Okta joins LiveVox, Orca Security, Proofpoint, Salesforce, Jamf, CDW, Veeam and more in announcing layoffs since the start of 2024.
“On Feb. 1, the company announced to its employees a restructuring plan intended to improve operating efficiencies and strengthen the company’s commitment to profitable growth,” it said. “The plan involves a reduction of the company’s workforce by approximately 400 full-time employees, or approximately 7%.”
In connection with the plan, Okta estimates it will recognize approximately $24 million of restructuring charges in the fourth quarter of fiscal 2024 for future cash employee severance and benefits costs, which primarily will be paid in the first quarter of fiscal 2025.
In a Worker Adjustment and Retraining Notification (WARN) notice with the California Employment Development Department, Okta said the layoffs are impacting 83 California workers at its San Francisco facility. The Okta layoffs should be complete on April 4 and the company expects them to be permanent.
CNBC obtained a copy of Okta CEO Todd McKinnon’s message to employees about the layoffs. Okta confirmed the authenticity of the message.
“In order to grow profitably, we need to run the business with greater efficiency,” he said. “While we’ve taken steps in the right direction, the reality is that costs are still too high. We need to be mindful of our overall spend so we can continue to invest in the areas, products and routes to market with the most opportunity. To capture our massive potential and build an iconic company, we must be thoughtful about where we place our bets. This action is a proactive measure to help set the company up for long-term success.”
Okta is critical infrastructure for 18,800 organizations around the world, McKinnon said.
“We’re looking forward to the work ahead with Okta in the right position to extend our leadership position and execute our vision to free everyone to safely use any technology,” he said.
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