Okta Layoffs

Okta laid off 180 employees on February 4, 2025, representing about 3% of its workforce, in what the company described as a reallocation of resources toward new growth areas. The identity security firm had already cut 300 people in February 2023 and 400 more in February 2024, making this the third consecutive February reduction. Despite the cuts, Okta's business had been growing: the company reported Q3 fiscal 2025 revenue of $665 million, up 14% year over year. No specific teams or divisions were named as affected. A company spokesperson said Okta was "committed to providing support and resources" to departing employees but did not specify severance terms.

Reason: Reallocating resources to new growth areas

Source: techcrunch.com

Okta laid off 400 employees, about 7% of its workforce, on February 1, 2024, the cybersecurity firm's second major reduction in twelve months. CEO Todd McKinnon told staff in a memo that despite strong Q3 results, including 21% year-over-year revenue growth to $584 million, costs remained too high for the company to reach its profitable-growth targets. 'In order to grow profitably, we need to run the business with greater efficiency,' McKinnon wrote. 'While we've taken steps in the right direction, the reality is that costs are still too high.' Departing U.S. employees received extended payroll time, cash severance, continued healthcare coverage, and job-placement assistance. Okta estimated $24 million in restructuring charges for fiscal Q4 2024.

Reason: Cost reduction to achieve profitable growth

Source: cnbc.com

Okta disclosed a workforce reduction affecting its SF Bay Area operations in February 2, 2023. Approximately 300 roles were eliminated.

Source: bloomberg.com

Okta disclosed a workforce reduction affecting its SF Bay Area operations in August 26, 2022. Approximately 24 roles were eliminated.

Source: unleash.ai