Freshworks, the US-based IT company with over 5,000 employees worldwide, has announced plans to reduce its workforce by 13%, impacting approximately 660 employees. This decision is part of a broader restructuring strategy aimed at improving operational efficiency and aligning talent with the company’s strategic priorities.
The layoffs will affect employees across Freshworks’ global operations, including in the US, India, and other regions. The company disclosed its decision in a regulatory filing with the US Securities and Exchange Commission (SEC) alongside its quarterly earnings report.
Dennis Woodside, the CEO of Freshworks, who assumed leadership on May 1, outlined the rationale behind this decision. He emphasized the need to streamline operations and focus on three key areas: the employee experience (EX) business, artificial intelligence (AI), and customer experience (CX) products.
Under his leadership, Freshworks has already begun consolidating teams and reallocating resources. Teams working on CX products such as support, sales, and marketing have been merged to enhance efficiency, with investments redirected towards the company’s fastest-growing EX segment.
“These changes were made carefully to lay a strong foundation for the future,” Woodside explained in an open letter to employees. He also highlighted the company’s intent to sharpen its focus on priorities that drive customer impact.
The layoffs mark a significant moment for Freshworks as it adapts to evolving market demands and prepares for long-term growth. By prioritizing its EX, AI, and CX initiatives, the company aims to create a more agile and focused workforce capable of delivering greater value to its customers.
While the decision affects many employees, the company views this restructuring as a necessary step toward ensuring sustained success in an increasingly competitive tech landscape.
