Freshworks To Cut 13% Workforce

In a significant shift to streamline its operations, Nasdaq-listed Freshworks has announced a workforce reduction impacting approximately 660 employees, or 13 per cent of its global team. This strategic decision comes under the guidance of CEO Dennis Woodside, who shared the news with employees in a letter dated 7 November. Woodside, who took over the CEO role five months ago, emphasised that the layoffs are part of the company’s broader strategy to enhance efficiencies and refocus on core priorities, including employee experience (EX), artificial intelligence (AI), and customer experience (CX).

“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," Woodside wrote. He explained that when he assumed the role, he was tasked with reassessing Freshworks’ strategic goals to ensure that the company remains aligned with its most critical business drivers.

Freshworks, a software-as-a-service (SaaS) firm known for its customer relationship management and IT service management solutions, has been profitable and continues to see growth in its AI-driven product offerings. By streamlining its workforce, the company aims to realign its resources to bolster these high-priority areas, with an emphasis on delivering heightened value to its customers.

With over 5,000 employees globally, Freshworks has experienced multiple restructuring phases over the past year, adapting to evolving business needs and market demands. Dennis Woodside’s leadership transition to CEO follows his prior appointment as President in 2022, where he was responsible for overseeing global business operations and strategy. Since then, Woodside has been active in driving Freshworks toward achieving operational simplifications and positioning the company for sustained growth in a competitive SaaS market.