US-based access and identity management company Okta plans to layoff 180 employees, as part of a restructuring plan.

This follows a previous reduction of 400 workers in 2024 as part of the company’s strategy to address financial concerns and enhance operational efficiency. The company also axed 300 employees in February 2023.

In a SEC filing, a company said: “The company announced to its employees a restructuring plan intended to reallocate resources toward priorities to drive growth.

“The plan involves a reduction of the Company’s workforce by approximately 180 full-time employees, or approximately 3%.”

The company expects to incur about $11m in restructuring costs in Q4 of fiscal 2025, mainly for severance and benefits, which will be paid in Q1 of fiscal 2026.

Additionally, a minor stock-based compensation adjustment is expected to be recorded in Q1 of fiscal 2026 for terminated employees, the firm said.

These charges will be excluded from the company’s non-GAAP financial measures.

Okta had approximately 5,300 employees at this time last year, according to Techcrunch.

The company reported a 14% increase in fiscal third-quarter revenue, reaching $665m compared to the same period in the previous year.

For the full year fiscal 2025, the firm anticipates $2.595bn to $2.597bn in total revenue, a growth rate of 15% year-over-year.

Okta CEO and co-founder Todd McKinnon said: “Our solid Q3 results were underpinned by continued strong profitability and cash flow.

“The focused investments we’ve made in our partner ecosystem, the public sector vertical, and large customers are materialising in our business with each of these areas contributing meaningfully to top-line growth. Okta’s commitment to innovation and elevating identity security is resonating with customers of all sizes as they look to Okta to modernise their identity infrastructure.”