Okta is slashing 7% of its workers as part of a restructuring.
The layoffs, announced Thursday, will result in approximately 400 Okta employees losing their jobs, according to a filing with the Securities and Exchange Commission (SEC).
In a statement to FOX Business, Okta called it a "very difficult decision but necessary to fulfill our commitment to profitable growth while running the business with greater efficiency."
The identity technology company informed affected employees on Thursday after CEO Todd McKinnon announced the restructuring plan to the whole company in an email.
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"In order to grow profitably, we need to run the business with greater efficiency," he told employees. "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 areas, products, and routes to market with the most opportunity."
Okta’s workforce totaled more than 5,900 at the end of October.
The job cuts are a "proactive measure to help set the company up for long-term success," according to McKinnon.
"We are grateful to our outgoing colleagues for their many contributions to Okta and are committed to providing all possible resources to help them through this time," the company told FOX Business.
In the U.S., they will get support such as "additional time on payroll, the March RSU vest (if eligible), cash severance, extended healthcare coverage, job placement resources, and support for anyone on a company-sponsored visa," McKinnon said.
Okta said a roughly $24 million charge related to the restructuring will come in the fourth quarter of its fiscal 2024. In the first quarter of the following fiscal year, it will largely pay those severance and benefits costs, according to the company.
The identity company also said Thursday that its fourth quarter and fiscal 2024 expectations, which respectively forecast $585-$587 million and $2.243-$2.245 billion in revenue among other things, remained the same.
Tech firms around the world have laid off nearly 30,000 people since the year began, according to Layoffs.fyi.
Some companies in other industries have also taken steps to reduce their workforce in recent weeks, including REI, Levi's and Deutsche Bank.
