Nasdaq-listed Freshworks Announces Layoffs, 13% Workforce Reduction Expected

Dennis Woodside, CEO of Freshworks, revealed that the company would implement 13% of its workforce reduction. It would result in laying off around 660 employees. This move is part of the firm’s focus on crucial business goals. It is aimed at streamlining operations and increasing efficiency.

In a letter to employees, Woodside underscored the difficulty of this decision. He highlighted his responsibility to be transparent about the reasons behind it. 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... When I became the CEO five months ago, I was asked to assess our strategy and ensure we’re focused on the most critical drivers of our business."

With a motive to strengthen the company’s employee experience (EX), artificial intelligence (AI), and customer experience (CX), this arrangement is designed to bring more value to its customers, as per Woodsie. He noted that these changes are being made during a period of profitability, with the company’s AI-driven products delivering significant customer value.

With over 5,000 employees, Freshworks has undertaken several rounds of layoffs over the previous year. In March 2023, the company laid off around 114 employees. This was followed by another round that witnessed around 90-100 positions cut.

The company also experienced significant leadership rearrangement. Founder Girish Mathrubootham transitioned to the role of executive chairman in May, and Woodside stepped in as CEO.

Apart from this, other key appointments also took place. This includes Abe Smith as global field operations leader, Mika Yamamoto as Chief Customer and Marketing Officer (CCMO), and Johanna Jackman as Chief People Officer (CPO).