New Delhi: Freshworks, a California-based software company has declared that it will axe close to 13% of its workforce, which will be about 660 of its 5,000 employees. The firm is planning this move in line with its strategy to help the company sharpen its focus on key areas of growth in AI, EX, and CX. This, according to CEO Dennis Woodside, is a step in the direction toward simplifying the operations and leveraging efficiency with profitability.
Those going to be let go will also be informed through “Transition Discussion” sessions. The date, however, differs. In the United States and India, the employees are going to be informed on consecutive days. Freshworks has assured its laid-off employees with severance packages, continuation of their healthcare benefits, career assistance and with proper guidance on immigration.
The layoff announcement came on early November 7, 2024 within an internal memo from Woodside, stated how hard it had been to make decisions that affect employees’ lives. Since taking over five months ago, he was asked by the Board of Directors to review the company’s strategy and ensure it was aligned with its biggest business goals. The review showed a necessity in streamlining to make their company run more operationally efficient.
Still, Freshworks had reported strong financials in Q3, with revenue jumping 22% to $186.6 million compared with last year’s $153.6 million. The company also reduced its net loss by 3.5% to $29.9 million from $31 million. The companys strong numbers forced the group to raise their revenue projections for the fiscal year 2024.
The company has been investing heavily in AI, recently launching the Freddy AI Agent, designed to help improve customer and employee experiences by automating a ton of service requests. Freshworks serves over 68,000 customers across the globe and competes with major players like Salesforce and ServiceNow.
