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.

Okta layoffs 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.

Termination agreements for Okta employees

In Canada, non-unionized employees at Okta are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Rights to severance during mass layoffs

Major tech layoffs continue

The job cuts at Okta come amid a flurry of tech sector layoffs in 2024.

Big names, including PayPal, Salesforce, Microsoft, eBay, Brex, Wayfair, Amazon, YouTube, Google, Instagram, Discord, and Twitch, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Dell layoffs hit multiple roles, including sales, marketing: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.