Identity access management company Okta Inc. said today in a message to employees that it will lay off 7% of its staff, or about 400 employees, in a cost-cutting measure, according to an email message.

“In order to grow profitably, we need to run the business with greater efficiency,” Okta Chief Executive Todd McKinnon said in the message obtained by CNBC. “While we’ve taken steps in the right direction, the reality is that costs are still too high.”

In his message to employees, McKinnon said that it was a “proactive measure” designed to set the company up for “long-term success.”

This staff cut comes almost exactly one year after the company’s last round of layoffs in February 2023, which cut its workforce by 5%, or about 300 employees at the time. During that period, McKinnon said that the company also needed to reduce spending and noted the company overestimated market demand.

Staff affected by the cuts in the U.S. will receive transition support, including additional time on payroll, severance, extended healthcare benefits and job placement resources, said McKinnon. Employees outside the U.S. will be supported based on laws and regulations in their respective countries.

Okta is far from the only the latest tech company to be hit by layoffs this year alone. In January SAP SE let go 8,000 staff on Jan. 24, Microsoft Corp. cut 1,900 jobs across its gaming division on Jan. 25, Google LLC cut 1,000 jobs on Jan. 16 and Salesforce Inc. laid off 700 employees on Jan. 26.

Photo: Okta