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San Francisco-based Okta lays off 400 employees

OKTA logo at their headquarters in SOMA district

San Francisco-based Okta lays off 400 employees

Identity management firm Okta has announced a seven percent job cut, affecting 400 employees, to manage costs effectively. 

Okta reaffirmed its financial outlook for the fourth quarter and the entire year, signaling stability in its business operations

CEO Todd McKinnon said the “reality is that costs are still too high.”

It reflects a broader trend in the tech industry, where layoffs have become increasingly common in early 2024.

Nearly 24,000 tech employees faced job losses in January alone. 

McKinnon said the company needs to invest more prudently to secure long-term success. 

This round of layoffs follows a previous reduction in February 2023, where approximately 300 employees were let go.

At the time, McKinnon said previous overhiring had caused unsustainable staffing levels. 

Following the announcement, Okta's stock experienced a 3.6 percent increase in premarket trading.

It indicates investor confidence amid the company's cost-cutting measures.

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