Okta, Inc., a software company based in San Francisco, California, has announced a restructuring plan that will result in the reduction of its workforce by approximately 400 full-time employees, or about 7% of its total staff. This announcement was made on February 1, 2024, and is part of the company's efforts to improve operating efficiencies and commit to profitable growth. The restructuring is expected to lead to approximately $24 million in charges for the fourth quarter of fiscal 2024, primarily related to employee severance and benefits, which are anticipated to be paid in the first quarter of fiscal 2025. Additionally, Okta expects to make an insignificant adjustment to its stock-based compensation expense in the first quarter of fiscal 2025 due to the equity compensation of...Show More

Okta, Inc., a software company based in San Francisco, California, has announced a restructuring plan that will result in the reduction of its workforce by approximately 400 full-time employees, or about 7% of its total staff. This announcement was made on February 1, 2024, and is part of the company's efforts to improve operating efficiencies and commit to profitable growth. The restructuring is expected to lead to approximately $24 million in charges for the fourth quarter of fiscal 2024, primarily related to employee severance and benefits, which are anticipated to be paid in the first quarter of fiscal 2025. Additionally, Okta expects to make an insignificant adjustment to its stock-based compensation expense in the first quarter of fiscal 2025 due to the equity compensation of the terminated employees. The company also reaffirmed its financial guidance for the fourth quarter and the fiscal year ending January 31, 2024, as previously issued in a press release on November 29, 2023. Okta plans to release its fourth quarter fiscal 2024 results after the market closes on February 28, 2024. The company has stated that it will exclude the restructuring charges from its non-GAAP financial measures.