Shares of Okta Inc.
OKTA,
rallied 3.2% in premarket trading Thursday, after the identity software company said it would lay off about 7% of its workforce, as part of a restructuring aimed at improving efficiencies and profitability. The company disclosed in an 8-K filing with the Securities and Exchange Commission that the restructuring involves cutting 400 full-time jobs. That will result in restructuring charges of $24 million in the fiscal fourth quarter for employee severance and benefits costs, which will mostly be paid in the first quarter. Separately, the company affirmed the financial guidance for the fourth quarter it provided in late-November, when Okta said it expects adjusted earnings per share of 50 cents to 51 cents and revenue of $585 million to $587 million. The stock has run up 20.3% over the past three months through Wednesday, while the S&P 500
SPX,
has gained 14.3%.
