re: What would you do in regards to 401k investment strategy based on my situation?

3-5% max of total portfolio is any individual stock is the guideline I follow. Rebalance/diversify a little more (20% company stock to 5% max).

Presume company stock is part of your 401k per title so tax sheltered makes following irrelevant but…if not tax sheltered, Tax loss harvesting (selling company stock shares that lost first) to get tax benefit in so doing. Need to move before year end.

Good luck.