Okta announces 7% workforce reduction

In a regulatory filing, Okta said, “On February 1, 2024, the company announced to its employees a restructuring plan intended to improve operating efficiencies and strengthen the company’s commitment to profitable growth. The plan involves a reduction of the company’s workforce by approximately 400 full-time employees, or approximately 7%. In connection with the plan, the company estimates that it will recognize approximately $24 million of restructuring charges in the fourth quarter of fiscal 2024 for future cash employee severance and benefits costs, which primarily will be paid in the first quarter of fiscal 2025. The company also expects to record an insignificant adjustment to its stock-based compensation expense in the first quarter of fiscal 2025 related to equity compensation for employees who were terminated. The company intends to exclude the charges associated with the plan from its non-GAAP financial measures.”