In a recent announcement, software giant Freshworks revealed plans to cut approximately 660 jobs, representing 13% of its global workforce, as part of a major cost-cutting initiative. The decision follows a strategic review initiated by CEO Dennis Woodside, who took over the role five months ago. This move aligns with the company’s focus on scaling its Employee Experience (EX) business and leveraging advancements in Artificial Intelligence (AI) and Customer Experience (CX).
CEO’s Message: A Difficult but Necessary Decision
Dennis Woodside, Freshworks’ CEO and President, acknowledged the challenging nature of the layoffs. “There’s simply no good time to make a decision like this that affects people’s lives,” he said, underscoring the weight of the decision. Despite Freshworks’ continued profitability and the value its AI-driven products bring to customers, Woodside emphasized the importance of realigning resources to ensure long-term operational efficiency and growth.
Focus on Key Growth Areas: EX, AI, and CX
Under the new strategy, Freshworks will prioritize growth in its Employee Experience (EX) sector, while also driving innovation in AI and Customer Experience (CX). Woodside noted that Freshworks has combined teams working on CX-related products, such as support, sales, and marketing, to enhance cohesion and reallocate resources to EX—a segment experiencing rapid growth. This restructuring aims to streamline operations and reinforce Freshworks’ position in the software market.
Support for Affected Employees
Freshworks has committed to offering comprehensive support for impacted employees. Layoff notifications will occur in phases, respecting local labor laws in regions like the U.S. and India. The company will provide severance packages, healthcare benefits, career transition services, and immigration assistance where needed, easing the transition for those affected.
Conclusion: Positioning for a Scalable Future
The workforce reduction at Freshworks reflects the company’s intent to build a more efficient, scalable business model by concentrating on high-impact areas. While this decision has impacted many employees, it marks a critical step in Freshworks’ journey to drive sustainable growth and innovation in EX, AI, and CX. By honing in on these priorities, Freshworks aims to strengthen its market presence and continue delivering value to its global customer base.
