Okta Cuts 180 Jobs in Third Annual February Restructuring

Identity security firm Okta (NASDAQ: OKTA) is cutting 180 jobs, or roughly 3% of its staff, as part of a restructuring plan announced Monday. The move marks the third year in a row the company has reduced its workforce in February. TechCrunch first reported the cuts.

Key Facts

• 180 employees (3% of workforce) have been let go.
• $11 million set aside for severance and benefits costs.
• 56 jobs cut specifically from the San Francisco headquarters.
• Source: TechCrunch, SFGATE

Shifting Focus

Okta says the cuts are necessary to move resources to “new growth areas,” specifically security and identity automation. While the company is profitable, it is choosing to cut costs in some departments to fund these priorities. This is a common pattern in the software industry right now: hiring for AI and automation roles while cutting traditional sales or support jobs.

The Cost of Cuts

According to filings, Okta expects to take a charge of about $11 million to pay for severance and benefits. Most of these payouts will happen by April 2025. The company also filed a WARN notice in California, confirming that 56 of the 180 lost jobs were based in its San Francisco offices.

A February Habit

This layoff follows a clear pattern for Okta. The company cut 400 jobs (7%) in February 2024 and 300 jobs (5%) in February 2023. Despite the repeated cuts, the company’s stock has remained relatively stable as it tries to fix its bottom line and compete with rivals like Microsoft.