Freshworks to lay off 660 employees amid cost-cutting measures
Freshworks, a Nasdaq-listed software-as-a-service (SaaS) company, is set to cut 13% of its workforce. The decision will lead to the loss of around 660 jobs. The move comes as part of the firm's strategic plan to drive efficiencies and simplify operations across teams. Freshworks CEO Dennis Woodside announced the layoff decision earlier today.
Woodside addresses workforce reduction
In a letter to employees, Woodside emphasized his commitment to transparency about the decision. He wrote, "There's simply no good time to make a decision like this that affects people's lives and it's my responsibility to be transparent about how and why this decision was made." He added that as CEO, he must assess the company's strategy and focus on key business drivers.
Freshworks's strategic realignment and future focus
Woodside clarified that the job cuts are part of a broader strategic realignment. The goal is to focus on employee experience (EX), artificial intelligence (AI), and customer experience (CX). He said, "To add more focus on our EX, AI, and CX priorities, we are realigning our global workforce." Woodside stressed that these changes are being made while the business is still profitable.
Freshworks's history of layoffs and management changes
Notably, this isn't the first time Freshworks, which has over 5,000 employees, has cut jobs. The company has seen multiple layoffs and management reshuffles since 2024. In March 2023, nearly 114 jobs were cut in a similar move. Another layoff round came in June that year, costing an estimated 90-100 jobs.
Leadership changes at Freshworks
Along with job cuts, Freshworks has also witnessed major leadership changes. In May, Girish Mathrubootham moved from his position as the CEO to become the company's executive chairman, with Woodside taking his place. Other major management changes include the exit of Chief Revenue Officer Pradeep Rathinam and the appointment of Abe Smith as global field operations leader.
