Okta Lays Off 180 Employees Amid Restructuring—Third Consecutive Year of February Cuts

Latest Workforce Reduction

Okta, the San Francisco-based identity software company valued at $16 billion, has laid off 180 employees—3% of its workforce—marking the third consecutive year of February job cuts.

The company confirmed the layoffs in a Tuesday morning filing with the Securities and Exchange Commission, attributing the move to a “restructuring plan intended to reallocate resources toward priorities to drive growth.” Okta also filed a WARN notice with California’s Employment Development Department and Mayor Daniel Lurie’s office, confirming that 56 of the affected employees are based in California, including some at its SoMa headquarters and others working remotely.

A Pattern of February Layoffs

This follows previous workforce reductions of 400 employees in February 2024 and 300 employees the year before. While Okta did not disclose its current employee count, estimates suggest it had around 5,300 employees as of early 2024.

Financial Gains, Yet More Job Cuts

Despite recent financial improvements, Okta has continued its February layoff trend. Earlier in the year, the company reported a $40 million loss for the quarter ending in April. However, it later posted its first-ever quarterly profits, earning $29 million in the three-month period ending in July and $16 million in the following quarter.

Employee Reactions and Company Statement

By midday, laid-off employees were sharing updates on LinkedIn, with one engineer writing, “More cuts at Okta and I did not escape the cleaver.” A program manager, who was let go just three months before expecting a baby, posted seeking job leads.

In a statement, Okta spokesperson Jenny Grich said, “We thank our outgoing colleagues for all they contributed to Okta and are committed to providing support and resources to help through this transition.” Grich did not specify which departments were affected.

Okta’s Financial Struggles and Future Outlook

While Okta has struggled for years to achieve profitability—accumulating losses of more than $2.8 billion by February 2024—the company's financial outlook has recently improved. In December, it reported fiscal third-quarter revenue of $665 million, a 14% increase from the prior year. However, those gains were not enough to prevent another round of job cuts.