Okta lays off 400 employees — almost exactly a year after last staff cuts
U.S. access and identity management giant Okta has said it is laying off approximately 400 employees, or 7% of its global workforce.
The layoffs come almost exactly a year to the day after Okta announced plans to reduce its workforce by 5%, about 300 employees.
In an email sent to employees, which Okta shared with TechCrunch, Okta chief executive Todd McKinnon said that the decision was necessary for the San Francisco-based organization to grow profitably. Okta, which counts more than 18,000 customers, posted better-than-expected quarterly earnings in November, with revenue increasing 21% to $584 million.
“While we’ve taken steps in the right direction, the reality is that costs are still too high,” McKinnon said in the email. “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.”
When asked by TechCrunch, Okta spokesperson Kyrk Storer declined to say which roles and geographies are affected, or how many management positions were cut.
McKinnon’s email suggests employees have been impacted globally. “If you work in the U.S., you will receive an email in the next 15 minutes notifying you if your role is impacted or not,” he wrote, noting that U.S.-based employees would receive support including severance pay and extended healthcare coverage.
“For employees outside the U.S. who have been identified as impacted or at risk, the notification process may be different based on local laws and practices,” McKinnon wrote.
The layoffs at Okta come just hours after cybersecurity giant Proofpoint confirmed to TechCrunch that it was laying off about 6% of its global workforce, or 280 employees.
https://techcrunch.com/2024/01/25/tech-layoffs-2023-list/
