Okta announces restructuring plan, to cut 300 employees

In a regulatory filing, on February 2, Okta announced to its employees a restructuring plan intended to reduce operating expenses and improve profitability. The plan involves a reduction of the company’s workforce by approximately 300 full-time employees. In connection with the plan, the company estimates that it will recognize approximately $15M of restructuring charges in the fourth quarter of fiscal 2023 for future cash employee severance and benefits costs, which primarily will be paid in the first quarter of fiscal 2024. The company also expects to record an insignificant adjustment to its stock-based compensation expense in the first quarter of fiscal 2024 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.