The ‘Making Money’ host reacts to the cautious market ahead of the release of the December jobs report.
Okta will cut 7% of its workforce as part of its restructuring.
The layoffs announced Thursday will result in approximately 400 Okta employees losing their jobs, according to a filing with the Securities and Exchange Commission.
In a statement to FOX Business, Okta said the decision was “a very difficult decision, but necessary to deliver on our commitment to profitable growth while running our business more efficiently.” Ta.
Okta announces plans to cut 400 jobs. (license/image)
The identity technology company notified affected employees on Thursday after CEO Todd McKinnon announced the restructuring plan to the entire company in an email.
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“To grow profitably, we need to run our business more efficiently,” he told employees. “While we have made progress in the right direction, the reality is that costs are still too high. You have to be mindful of your spending.” ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Octa | OKTA Co., Ltd. | 85.03 | +2.38 | +2.89% |
Okta had more than 5,900 employees at the end of October.
McKinnon said the layoffs are “a proactive step to position the company for long-term success.”
“We are grateful to our departing colleagues for their many contributions to Okta and are committed to providing all possible resources to help them through this time,” the company said in a statement to FOX. told Business.
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In the U.S., assistance includes “additional payroll time, March RSU vests (if eligible), cash severance payments, extended health insurance, job placement resources, and support for those with company-sponsored visas.” McKinnon said he can. .
Okta CEO Todd McKinnon said the layoffs are “a proactive step to position the company for long-term success.” (Omar Marquez/SOPA Images/Lightrocket/Getty Images)
Okta said it will incur approximately $24 million in charges in the fourth quarter of fiscal 2024 related to the restructuring. The company said it expects to pay the majority of these severance and benefit costs in the first quarter of the next fiscal year.
The company announced Thursday that its expectations for the fourth quarter and fiscal year 2024 remain unchanged, particularly for the fourth quarter and fiscal year 2024, where revenue is expected to be between $585 million and $587 million and between $2.243 billion and $2.245 billion, respectively. .
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Tech companies around the world have laid off nearly 30,000 people since the beginning of the year. According to Layoffs.fyi.
Some companies in other industries have also cut jobs in recent weeks, including REI, Levi’s and Deutsche Bank.
