Based on y...

Question

Based on your knowledge of working in sales at Okta, do you anticipate the sales team at Okta expanding or downsizing within the coming year?

Current Employee · Accepted Answer

Either staying the same or downsizing. I’m not sure if downsizing will come from layoffs though- a lot of reps are leaving and their positions are not being backfilled.

Current Employee · Answer

TLDR, Susan St. Ledger (SSL) was a bad sales leader with bad practices that hired reps who have no business being Okta or just can't close when times are not good anymore - this is the sole reason why sales reps are being squeezed out or asked to transitioned out.

The goals SSL set with C-suite were ambitious and based on "free money"/economy at the time. The deals were great short term but long term awful but it seem SSL and all the sales leaders she brought with her or hired didn't plan for either the economy changing or to stay at Okta for more than 3. So Okta RIF'd a bunch of sellers across most segments with the exception of Strategic/Public Sector because the thinking is these sellers take about 12-18 months to get producing; many of these reps already received their 6-9 month guarantees, are at month 24 and just riding on their high base salaries with not much on the board. In addition the smaller market segments are having to play by new rules and some still have a slightly inflated quota due to their commission structure, and with younger sellers they tend to believe the grass is greener; Okta did reduce quotas across the board but it's relative to the "good" comps people negotiated for themselves.

The other direct sales issue are SDRs, what's their value, and in what segment is the answer that is slowly flowing up to the top. When times were great they hired a ton of SDRs to fill the anticipated need and with the old idea of them cold emailing in droves, but the landscape across the board has changed significantly in the last 3 years. SDRs are still having success in the upper market segments but it seems that's about it

Marketing is also going through a change. They were spending big, on big events, for big expensive items. After Susan St. Ledger left, it seems like they realized going back to customer advisory events centered around the customer+product are more fruitful than a ton of massive events with booths. In addition, the feeling was a handful of product marketers didn't quite understand the value each product provided different types of customers/buyers.

Due to a renewed interest in scrutinizing everything and focusing on burn, positive change is happening. It looks about 2-3 years to get here, so it'll take at least 1.5-3 years to course correct the ship from a sales and marketing standpoint.

Product has been crushing it though and has had a good growth especially in CIAM and what will be IGA and PAM.

Current Employee · Answer

I think as a company they are assessing whether SDRs are still worth the money they are paying for them.

SDRs are under a microscope, put up or shut up, and there is a big question mark for next year.

Current Employee · Answer

Reps are leaving in droves again and those that aren't are being placed on PIP's. Okta territories are WILDLY different between the west and the east. Currently teams are struggling on both sides. It's unprecedented. Managers are thinning the herds again and many reps are being placed on PIPS, even those that are bringing in more revenue than others (the way their choosing reps is insane).. it's like another round of quiet layoffs is happening. No roles are being backfilled unless the teams are ridiculously small.

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Anonymous Q&A

Based on your knowledge of working in sales at Okta, do you anticipate the sales team at Okta expanding or downsizing within the coming year?