Okta to Cut 300 Jobs Citing Overhiring, ‘Execution Challenges’
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Okta Inc., 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% in premarket trading.
The cuts — about 5% of the workforce — are due to overhiring and “execution challenges,” wrote Chief Executive Officer Todd McKinnon in a letter to employees Thursday. The company will focus on reducing spending and improving profitability moving forward, McKinnon said. Okta will incur about $15 million in restructuring costs, it said in a filing.