US access and identity management giant Okta has announced that it will lay off approximately 400 employees, representing 7% of its global workforce.
The layoffs come almost exactly one year after Okta announced plans to cut its workforce by 5%, or about 300 jobs.
In an email sent to employees that Okta shared with TechCrunch, Okta CEO Todd McKinnon said the decision was necessary for the San Francisco-based organization to grow profitably. He said it was. His Okta, which has more than 18,000 customers, announced better-than-expected quarterly profits in November, with sales up 21% to $584 million.
“While we have been moving in the right direction, the reality is that costs remain too high,” McKinnon said in an email. “We need to be mindful of our overall spending so that we can continue to invest in areas, products and routes to market where we have the greatest opportunities. Building a successful company requires being thoughtful about where you place your bets. This step is a proactive step to position your company for long-term success.”
In response to questions from TechCrunch, Okta spokesperson Kyrk Storer declined to say which roles or regions would be affected or how many managers would be eliminated.
McKinnon's email suggests that employees around the world are being affected. “If you work in the U.S., you will receive an email within 15 minutes notifying you if your role is affected,” he wrote, adding that U.S.-based employees will receive extended retirement benefits and health benefits. He said he would be able to receive support such as:
“For non-U.S. employees identified as affected or at risk, the notification process may vary based on local laws and practices,” McKinnon wrote.
The layoffs at Okta come just hours after cybersecurity giant Proofpoint confirmed to TechCrunch that it would lay off 280 people, or about 6% of its global workforce.