Freshworks, a leading software company, has announced a reduction of approximately 660 jobs, representing 13% of its global workforce, as part of its cost-cutting measures. The decision aligns with the company’s strategic shift to streamline operations and focus on key areas such as Employee Experience (EX), Artificial Intelligence (AI), and Customer Experience (CX).
In a message to employees, CEO and President of Freshworks Dennis Woodside expressed the difficult nature of the decision, stating, “There’s simply no good time to make a decision like this that affects people’s lives.”
He emphasised that while the company remains profitable and its AI-powered products continue to deliver increasing value to customers, this move is essential to ensure future growth and operational efficiency.
“We began by combining teams focused on Customer Experience (CX) products, including support, sales and marketing, and reallocating people and investments to prioritize our fastest growing Employee Experience (EX) business, ” stated in the note.
Woodside explained that the decision followed a comprehensive review of Freshworks’ strategy, which was initiated shortly after his appointment as CEO five months ago. The company has chosen to prioritise the growth of its Employee Experience business while also aligning its customer-centric teams to drive innovation in AI and CX.
The layoff process will unfold on different timelines based on local regulations. Employees in the US and India will be notified through a “Transition Discussion” scheduled for this week, with support provided for those impacted.
Freshworks has committed to offering departing employees severance pay, continued healthcare coverage, career transition services, and, where applicable, immigration support.
While acknowledging the impact of this decision, Woodside expressed gratitude to the affected employees for their significant contributions to the company and reiterated his commitment to supporting them during this transition.
The company’s move is part of an ongoing effort to optimise its operations and further strengthen its position in the market, aiming for a more efficient and scalable business model going forward.
