Okta cuts 3% of workforce, or 180 jobs, in third consecutive year of layoffs

What’s going on at Okta?

San Francisco-based identity security firm Okta has announced its third round of layoffs in three years, cutting 180 employees—about 3% of its workforce. The company said the cuts are part of an effort to reallocate resources toward priorities that drive growth.

This follows previous rounds of layoffs in 2023 and 2024.

Details

Okta expects to spend $11 million on severance and benefits

• Most severance payments will occur in the fiscal quarter ending April 30, 2025.
• A minor adjustment to stock-based compensation will also be recorded this quarter.
• The company has assured support and resources for impacted employees.

Official context

While Okta continues to restructure, it remains one of only eight cybersecurity firms to have announced at least three rounds of layoffs since COVID-19, alongside companies like F5, Cybereason, and Snyk.

• Despite ongoing cuts, Okta’s overall headcount has remained relatively steady due to new hires in other areas.
• Okta’s stock traded at $93.05 midday Tuesday, though it remains 68% down from its peak of $291.78 in 2021.
• Okta has faced several setbacks in recent years, including a hack in September 2023 and unauthorized access by extortion group Lapsus$ in 2022.

Okta acquired Auth0 for $6.5 billion in 2021.

Impact on Canadian staff

It remains unclear how many of Okta’s more than 400 Canadian employees will be affected by the layoff.

ADDITIONAL RESOURCES
• Can I be fired after a bad performance review in Ontario?
• What Albertans need to do if they’re fired after a bad performance review
• Fired after a bad performance review in B.C.: Employee rights

Next steps for Okta employees

If you’ve been affected by the layoffs at Okta, understanding your legal rights is crucial.

Non-unionized employees in Canada’s tech sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

Okta isn’t the only major employer starting 2025 by scaling back their staffing levels.

Big names, including Amazon, BP, Microsoft, Meta, Hudson’s Bay and Wayfair, have also pulled out the axe.

SEE ALSO
• Salesforce to cut jobs at ‘Own’ following $2-billion acquisition
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Where are layoffs happening in Canada?
• Pocket Employment Lawyer: Real-time insights on your rights

Lost your job? Contact us

If you’re affected by the latest round of layoffs at Okta, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.