Okta Layoffs Hitting Nearly 200 Workers as Part of RestructuringOkta Layoffs Hitting Nearly 200 Workers as Part of Restructuring

It’s February, so that means more Okta layoffs. This time, the layoffs are impacting 180 of the identity and access management (IAM) service provider’s employees.

This is at least the third February in a row in which Okta has announced layoffs. In February 2023, it announced layoffs impacting 300 workers primarily due to overhiring. And in February of last year, it announced layoffs impacting 400 workers as part of a restructuring plan.

Okta disclosed the latest layoffs in a U.S. Securities and Exchange Commission filing. Okta didn’t respond to Channel Futures' request for additional comment.

Okta Layoffs to Drive Growth

On Feb. 4, Okta announced to its employees a restructuring plan intended to reallocate resources toward priorities to drive growth. The plan includes Okta layoffs impacting 3% of its workforce.

In a Worker Adjustment and Retraining Notification (WARN) notice with the California Employment Development Department, Okta said the layoffs are impacting 56 California workers at its San Francisco facility. The Okta layoffs should be complete on April 8 and the company expects them to be permanent.

Okta estimates it will recognize about $11 million in restructuring charges in the fourth quarter of fiscal 2025 for future cash employee severance and benefits costs, which primarily will be paid in the first quarter of fiscal 2026.

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Okta isn’t the only company doing business in the channel that has announced layoffs in 2025. Salesforce, Google Cloud-focused SADA and Citrix-controlled Cloud Software Group both started the year with a wave of layoffs.

Cloud Software Group didn't say how many were laid off from the company, although it is the third January in a row where the company has done so. Channel giant SADA also avoided stating how many workers were laid off, claiming it had to "reduce a portion of its workforce across various departments in North America."