US access and identity management giant Okta said it is laying off around 400 employees, or 7% of its global workforce.
The layoffs come almost exactly a year after Okta’s layoff announced plans to cut its workforce by 5%about 300 employees.
In an email to employees, which Okta shared with TechCrunch, Okta CEO Todd McKinnon said the decision was necessary to grow the San Francisco-based organization profitably. Okta, which has more than 18,000 customers, posted better-than-expected quarterly earnings in Novemberwith revenue up 21% to $584 million.
“While we have taken steps in the right direction, the reality is that the costs are still very high,” McKinnon said in the email. “We need to be mindful of our overall spend so we can continue to invest in the sectors, products and routes to market with the most opportunities. To realize our enormous potential and build an iconic company, we need to think about where we place our bets. This action is a proactive measure to help the company set itself up for long-term success.”
When asked by TechCrunch, Okta spokesman Kyrk Storer declined to say which roles and geographies are affected or how many management positions were cut.
McKinnon’s email suggests workers have been affected worldwide. “If you work in the US, you will receive an email in the next 15 minutes notifying you whether or not your role is affected,” he wrote, noting that US-based employees will receive support, including severance pay and extended health care coverage .
“For non-U.S. employees identified as affected or at risk, the notification process may differ based on local laws and practices,” McKinnon wrote.
The layoffs at Okta come hours after cybersecurity giant Proofpoint confirmed to TechCrunch that it is laying off about 6% of its global workforce, or 280 employees.
