Okta to cut 300 jobs citing overhiring, ‘execution challenges’

OKTA, a software maker known for identity verification and login services, is cutting about 300 employees, the latest technology company to cut costs by shedding employees. The shares jumped 6.5 per cent in premarket trading.

The cuts – about 5 per cent of the workforce – are due to overhiring and “execution challenges,” wrote chief executive officer Todd McKinnon in a letter to employees on Thursday (Feb 2).

The company will focus on reducing spending and improving profitability moving forward, McKinnon said. Okta will incur about US$15 million in restructuring costs, it said in a filing.

San Francisco-based Okta’s headcount has roughly tripled since July 2020, to about 6,000 workers.

Company shares have dropped 66 per cent since the start of 2022 as investors became increasingly critical of high-growth, low-profit companies.

Okta is the latest technology firm to execute a headcount reduction, following firms like Workday, Splunk and Pinterest earlier in the week. BLOOMBERG