Okta Announces Workforce Reduction, Laying Off 7% of Employees

Identity Management Company Faces the Need for Greater Efficiency in a Strategic Move


Identity management firm Okta revealed plans to lay off approximately 7% of its workforce, impacting around 400 employees. The decision was communicated to the company’s staff in a message, outlining the leadership team’s strategic move to enhance business efficiency and ensure sustainable growth in the coming years.

The announcement, made by Okta CEO, detailed the decision’s context and emphasized the need to optimize operational costs to foster profitability. While the company has taken steps toward efficiency improvement, the message highlighted that existing costs remained elevated. The move aims to position Okta for long-term success by redirecting resources to areas, products, and market routes with the most growth potential.

The affected employees, primarily in the U.S., were notified individually, and discussions regarding next steps will be facilitated by their respective leadership teams. Outside the U.S., notifications and processes will adhere to local laws and practices.


In expressing regret for the impact on affected staff, the CEO assured that Okta is committed to supporting them throughout the transition. The company pledged various resources, including extended payroll, March RSU vest (if eligible), cash severance, healthcare coverage extension, job placement assistance, and support for those on company-sponsored visas.

Emphasizing Okta’s critical role as infrastructure for over 18,800 organizations worldwide, the message conveyed optimism about the company’s future. It reiterated Okta’s commitment to maintaining its leadership position and executing its vision of enabling secure technology use for everyone.

The move, while challenging for those affected, reflects Okta’s strategic commitment to sustainable growth, adaptability, and effective resource allocation. As the company navigates these changes, stakeholders will be keenly watching how Okta positions itself for the evolving landscape of identity management and cybersecurity.