A San Francisco-based cybersecurity firm has announced that it will lay off about 400 tech workers by April 4.
Okta will permanently lay off 83 employees who work at its First Street office in San Francisco or remotely in California, according to a WARN notice sent Thursday to the state Department of Employment Development and obtained by The Standard. The remainder apparently work outside California.
Okta CEO Todd McKinnon said the company, which handles identity management for more than 18,000 firms, would lay off about 7% of its workforce. The news was first reported by CNBC.
Acknowledging the announcement was "difficult news," McKinnon said the decision came after a fiscal-year business planning process with the company's leadership team. He pledged added payroll time, cash severance, extended health care coverage and job-placement resources for departing workers.
"In order to grow profitably, we need to run the business with greater efficiency. While we’ve taken steps in the right direction, the reality is that costs are still too high," McKinnon said.
According to third-quarter fiscal year results announced in late November, Okta's revenue grew 21% year-over-year to $584 million, with operating and free cash flows of $156 million and $150 million, respectively. The company said it plans to announce its fourth-quarter results after the market closes on Feb. 28.
A poll last October on the anonymous job forum Blind found that McKinnon rated on the higher end of noteworthy San Francisco executives, with an approval rating of 54%. That fell below Affirm’s Max Levchin and Uber’s Dara Khosrowshahi (both at 68%), DoorDash’s Tony Xu (67%) and Airbnb’s Brian Chesky (64%).