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Investing.com -- Okta (NASDAQ:OKTA), Inc. the identity and access management company, has confirmed its financial outlook for the fourth quarter and the fiscal year ending January 31, 2025. The reaffirmation of these projections aligns with the information provided in a press release issued on December 3, 2024.
On February 4, 2025, Okta announced a restructuring plan to its employees. The goal of this plan is to reallocate resources to better support growth-oriented priorities. As part of the restructuring, Okta plans to reduce its workforce by about 180 full-time employees, which equates to roughly 3% of its total staff.
The company estimates that it will recognize approximately $11 million in restructuring charges in the fourth quarter of fiscal 2025. These charges are slated to cover future cash payments for employee severance and benefits. The majority of these payments are expected to be made in the first quarter of fiscal 2026.
Okta also anticipates recording a minor adjustment to its stock-based compensation expense in the first quarter of fiscal 2026. This adjustment is related to equity compensation for the employees who will be let go as part of the restructuring plan.
In its non-GAAP financial measures, Okta intends to exclude the charges associated with the restructuring plan. The company’s decision to reaffirm its financial guidance and announce a workforce reduction is part of its strategic effort to drive growth.
According to Stifel analyst Adam Borg, "We believe these actions are another step in the right direction as Okta continues to rationalize its business and focus on driving growth."
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