Okta to Cut 400 Jobs Following Tech Peers in Reducing Costs
(Bloomberg) -- Okta Inc., a software company known for login and identity services, is cutting 7% of its staff to reduce costs, adding to a list of other tech firms that have been doing the same this year.
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The reductions will impact about 400 employees, Chief Executive Officer Todd McKinnon wrote in an email to staff on Thursday. “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,” he said.
San Francisco-based Okta is the latest technology company to reduce headcount this year, following Amazon.com Inc., Alphabet Inc.’s Google and Salesforce Inc. Okta cut about 300 employees in February 2023 due to overhiring and “execution challenges,” according to McKinnon.
Okta estimates it will incur about $24 million in severance and benefits costs during the fourth quarter of fiscal 2024 as a result of the job cuts. The company reaffirmed its quarterly guidance and said it will announce financial results on Feb. 28.
The shares, which have declined 8.7% so far this year, rose 2.6% as trading opened in New York on Thursday.
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