Freshworks, a cloud software company, announced a 13 percent reduction in its workforce, affecting 660 employees across several countries, including the United States and India. This decision is part of a broader strategy to streamline operations while focusing on specific growth areas.
As part of the restructuring, Freshworks is prioritizing its core business solutions, particularly in customer experience (CX) products, artificial intelligence (AI), and employee experience (EX) services. CEO Dennis Woodside explained that this refocusing strategy aims to unify the company’s CX functions—such as support, sales, and marketing—into a cohesive approach to resource allocation.
Impacted employees will receive transition support packages tailored to their region, taking into account local labor laws and customs. These packages will include severance based on tenure, extended medical benefits, and career assistance to help ease the transition.
This announcement comes as Freshworks reports a 22 percent year-on-year revenue increase in its third-quarter financials, reaching $186.6 million. However, the company also recorded GAAP operating losses of $(38.9) million, a slight increase from last year’s loss of $38.7 million in Q3.
