Okta, a leading provider of access and identity management solutions in the United States, has announced the layoff of around 400 people, or 7% of its worldwide workforce.
The layoffs came nearly precisely a year to the day after Okta revealed plans to decrease its staff by 5%, or around 300 people.
In an email to workers, which Okta shared with Eltrys, Okta CEO Todd McKinnon stated that the decision was required for the San Francisco-based company to develop economically. Okta, which has over 18,000 clients, reported better-than-expected quarterly results in November, with sales growing by 21% to $584 million.
“While we’ve taken the right steps, the reality is that costs are still too high,” McKinnon wrote in an email. “We must be aware of our total spending so that we can continue to invest in the locations, products, and routes to market with the greatest potential. To realize our enormous potential and develop an iconic organization, we must carefully consider where we invest our bets. This is a proactive step to position the organization for long-term success.
When questioned by Eltrys, Okta spokeswoman Kyrk Storer declined to identify which functions and geographies were affected or how many management positions were eliminated.
According to McKinnon’s email, employees throughout the globe have been affected. “If you work in the United States, you will receive an email in the next 15 minutes informing you if your role is impacted or not,” he said, emphasizing that U.S.-based staff will receive assistance, including severance compensation 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 said in a statement.
