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 of 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.
San Francisco-based Okta’s headcount has roughly tripled since July 2020, to about 6,000 workers. Company shares have dropped 66% 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.