Okta Axes 400 Jobs, Costs ‘Still Too High’

Okta is eliminating approximately seven per cent of its workforce, or 400 jobs.

The reduction comes almost a year after the identity management company announced plans to trim its headcount by five per cent.

What’s happening at Okta?

In a note to staff on Feb. 1, CEO Todd McKinnon said Okta needs to be run with “greater efficiency” in order to “grow profitably.”

“While we’ve taken steps in the right direction, the reality is that costs are still too high,” McKinnon said in the note, which was obtained by CNBC.

“We need to be mindful of our overall spend so we can continue to invest in the areas, products, and routes to market with the most opportunity.”

He added that severance for impacted employees outside the U.S. will “align with local laws and practices.”

The company claims on its website that it employs a global workforce of approximately 6,000 people.

Impact in Canada

It remains unclear if Canadian employees at Okta have been let go.

According to the company’s LinkedIn page, it has more than 400 workers in the country.

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