Okta has opened February with layoffs for a third consecutive year, cutting roughly 180 employees despite finally reaching profitability.
The San Francisco based identity software firm, valued at $16 billion, confirmed the reduction in a Tuesday Securities and Exchange Commission filing. The notice described the move as a “restructuring plan intended to reallocate resources toward priorities to drive growth.”
Workers learned of the cuts the same morning. California’s Employment Development Department and Mayor Daniel Lurie’s office also received a WARN notice, which listed 56 affected California employees split between the company’s SoMa headquarters and remote positions.
Before noon, terminated staff had already taken to LinkedIn. One engineer wrote, “More cuts at Okta and I did not escape the cleaver.” Meanwhile, a program manager asked her network for leads, noting the layoff arrived just three months before she and her husband expect their first child.
Spokesperson Jenny Grich thanked outgoing employees for their contributions and pledged support during the transition. She did not answer questions about which departments absorbed the cuts.
The pattern remains stark. Okta eliminated 400 positions in February 2024 and 300 the February before that. Yet this round lands under notably brighter financials. The company had accumulated more than $2.8 billion in losses through early 2024 and posted a $40 million quarterly loss that spring.
As a result, the subsequent turnaround carried weight. Okta booked its first ever quarterly profit of $29 million for the period ending in July, followed by another $16 million in net income over the next three months.
Those gains, however, could not interrupt the company’s February ritual.
