this post was submitted on 03 Feb 2024
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Unprofitable SF tech giant Okta lays off 400 workers, dozens in California::Okta, the San Francisco-based maker of identity and access tech, is laying off 400 workers, including 83 in California. CEO Todd McKinnon announced the news.

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[–] darkevilmac@lemmy.zip 77 points 9 months ago (2 children)

I kind of wonder how a company with such an iron grip on SSO can't manage to be profitable. That and I literally saw a job listing from Okta last weekend, so they're probably just trying to replace their tenured high cost employees with cheaper workers.

[–] Darorad@lemmy.world 14 points 9 months ago

It could also have been a ghost listing, but yeah, I'm baffled they aren't profitable

[–] Badeendje@lemmy.world 8 points 9 months ago* (last edited 9 months ago)

~~Probably because for the development stage they racked up such a massive debt they are collapsing under that weight.~~

Nope: looking at the linked filing, their sales and marketing is about half of their operating expenses. This includes sales and marketing direct cost, employees and stock options. Seems like they spend a lot of their budget there. And when their subscription income fell they need to follow suit. This was seen coming from a mile away.

https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001660134/000166013423000068/okta-20231031.htm