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Okta to cut 400 jobs, roughly 7% of their workforce

Published 02/01/2024, 10:48 AM
Updated 02/01/2024, 10:17 AM
© Reuters.  Okta (OKTA) to cut 400 jobs, roughly 7% of their workforce

On Thursday, Okta Inc . (NASDAQ:OKTA) announced to employees a restructuring plan that will involve a reduction of around 400 full-time staff, or 7% of the company’s workforce. Okta said the cuts come as the company works to improve operating efficiencies and strengthen its commitment to profitable growth.

As a result of the restructuring plan, the company expects to recognize around $24 million in restructuring charges in Q4 2024 in the form of future cash severance and benefits costs that will largely be paid out in Q1 2025.

Okta also said in an official filing that it expects to record an insignificant adjustment to its stock-based compensation expense in the first quarter of 2025 related to equity compensation of terminated employees.

The charges arising from the restructuring plan will be excluded from non-GAAP financial measures.

With Okta set to report Q4 earnings on February 28, it reaffirms its financial guidance for the quarter as well as the fiscal year ending January 31,2024.

Okta stock is trading at $85.11 Thursday morning, up 2.98%.

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