Zoho Founder Calls Out Freshworks’ Layoffs, Decrying ‘Corporate Greed’

Zoho founder Sridhar Vembu has publicly criticised recent layoffs at Freshworks, expressing frustration at what he perceives as a “greed-driven” approach imported from corporate America. Without directly mentioning Freshworks, Vembu’s remarks clearly align with the company's recent actions, as it laid off 660 employees despite strong revenue growth of 22 per cent and over $1 billion in cash reserves.

Vembu argued that companies in profitable positions with substantial cash should prioritise employee retention over layoffs, suggesting that workforce reduction in such scenarios erodes employee trust. He condemned Freshworks’ $400 million stock buyback plan as a lack of "imagination," urging leaders to use resources to expand into new areas rather than cutting jobs.

Vembu also warned against the detrimental effects of “shareholder-first” priorities, noting that placing shareholders above employees and customers damages morale and creates a “use-and-throw” culture.