Nasdaq listed Freshworks has laid off 13 per cent of its workforce. The cloud-based software-as-a-service company has said that the decision has been taken to realign their global workforce. This move will in turn affect 660 of their employees globally.
The company recently, under the leadership of CEO Dennis Woodside, decided to focus on three aspects. This includes customer experience (CX) products, AI, and employee experience business (EX). To focus on these products, the company decided to combine CX products, including “support, sales and marketing, and reallocating people and investments.”
Speaking about the layoff, Woodside said in a statement, “To add more focus on our EX, AI, and CX priorities, we are realigning our global workforce, putting us on a path to have a bigger impact for our customers.”
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Meanwhile, Woodside has also highlighted that the company’s business is profitable. Further, the company’s AI-powered products are providing increasing customer value, he added.
The layoff will impact employees from across the world, including the USA and India. “We believe this will help us accelerate our growth and simplify the way we work, so that we’re running Freshworks in a way that’s efficient and scalable,” added Woodside.
Employees whose roles will be affected will have a meeting invitation with their respective team leaders called ‘Transition Discussion’. The company has mentioned that transitioning employees will receive financial, medical, and career support. This includes severance pay based on the employee’s years of service and also Employee Assistance Program support. However, the support provided by the company will vary based on the local laws and customs of each company.
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Freshworks Q3 Results
Woodside further said, “While words alone can’t soften this news, we are committed to treating all impacted employees with dignity, respect, and thoughtful support as they transition.”
This comes at a time when the company also announced its third quarter results. The company’s revenue grows by 22 per cent to $186.6 million. Additionally, the company’s GAAP (loss) from operations was $(38.9) million. This was slightly up from $38.7 million in Q3 2023. The company has highlighted that the results highlight their focus on product innovation and operational discipline.
Speaking about the company’s latest results, Woodside said in a statement, “We continue to see mid-market and enterprise companies choose Freshworks as the AI-powered service platform that enables them to scale with exceptional customer and employee experiences.” Further, the company said in a statement that they have witnessed a strong demand for their Copilot feature, which was included in more than 50 per cent of larger deals this quarter.
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