Distressing News: Layoffs Announced for 500 Employees
Freshworks has decided to lay off approximately 500 employees, representing about 11 percent of the company’s total workforce. This move has been undertaken as part of the company’s increasing focus on AI and a restructuring of its operations. On May 6, CEO Dennis Woodside addressed employees in an internal memo, stating that the company is realigning its global workforce to accelerate its key growth drivers and to advance rapidly in the AI era.
Employees to be Notified via Email
He noted that this decision was not an easy one, as it entails bidding farewell to many talented colleagues. The company stated that employees in North America and India will be notified via email from their respective management teams regarding whether or not their jobs have been impacted. Employees in other regions will be informed in accordance with local regulations.
Focus on Growth Strategy
Freshworks did not explicitly specify which specific teams or functions have been affected. The CEO explained that the company is experiencing strong growth in its EX, AI, and CX segments, and that AI is a component in more than half of its major deals. He also added that the company will provide affected employees with benefits such as severance pay, Q1 bonuses, healthcare support, access to Employee Assistance Programs (EAP), and career services. In his message, the CEO affirmed that while the company’s mission and strategy remain unchanged, structural adjustments are being implemented to sharpen the focus on its growth strategy.
