Okta, a U.S.-based access and identity management giant, has laid off 180 employees, the company confirmed to TechCrunch on Tuesday. This marks the company's second major workforce reduction in 2023, following a similar move in February that affected 300 employees.

This latest round of layoffs comes just over a year after Okta let go of 400 workers, highlighting the company's ongoing efforts to optimize its workforce and adapt to the current market landscape. While Okta did not disclose the exact number of employees it has after this latest reduction, calculations suggest that the company had around 5,300 employees as of 2024.

Despite the workforce reductions, Okta's financial performance appears to be on track. In December, the company reported fiscal third-quarter revenue of $665 million, a 14% increase from the prior year's third quarter. This growth suggests that Okta's efforts to streamline its operations and focus on core business areas are yielding positive results.

The layoffs are likely part of Okta's strategy to maintain competitiveness in the access and identity management market, which is increasingly crowded and fast-paced. By reducing its workforce, the company can redirect resources to high-growth areas and invest in innovation, ultimately driving long-term success.

The news also raises questions about the broader trend of layoffs in the tech industry, particularly among large enterprises. As companies navigate the challenges of a rapidly changing market, they are being forced to make tough decisions about their workforce and operations. Okta's layoffs serve as a reminder that even successful companies must adapt to stay ahead of the curve.

As the tech industry continues to evolve, it will be important to monitor Okta's progress and the impact of its workforce reductions on its business. With a strong financial foundation in place, the company is well-positioned to navigate the challenges ahead and emerge stronger in the long run.