Freshworks Announces Significant Restructuring, Impacting Approximately 500 Employees

Freshworks Lays Off Approximately 11% of Workforce Amid Restructuring Efforts

Software-as-a-service firm Freshworks is undergoing significant restructuring, resulting in the elimination of around 500 employees globally, or nearly 11% of its workforce, as the company accelerates its push toward AI.

The move is part of a broader effort to realign the company's global workforce, with CEO Dennis Woodside citing the need to accelerate growth drivers and move faster in the AI era. In an internal letter to employees, Woodside stated that the decision was not made lightly, acknowledging that it would mean saying goodbye to many talented colleagues and friends.

Employees in North America and India will receive emails from their management leaders within 30 minutes clarifying whether their positions have been impacted. Due to country-specific regulations, employees in all other regions will be contacted over the coming days in accordance with local practices.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The company did not specify which teams or functions were impacted by the layoffs, stating that the restructuring efforts are aimed at realigning the organisation around a few key outcomes. However, Woodside noted that the company has strong momentum executing on its strategy, with Employee Experience (EX) growing rapidly as it moves upmarket, over half of large deals now including AI, and more than 80% of its Customer Experience (CX) customers having upgraded to its unified Freshdesk Omni.

To support affected employees, Freshworks has committed to providing severance pay based on tenure, Q1 bonuses, extended healthcare coverage, extended Employee Assistance Program (EAP) access through Spring Health, and career services and job placement support. Woodside expressed gratitude for the contributions of departing team members, stating that they will always be a valued part of the company's story and extended community.

Woodside emphasized that the company's mission and strategy remain the same, with a focus on driving growth across Employee Experience (EX), AI, and Customer Experience (CX). The realignment is aimed at ensuring every Freshworks employee is focused on solving the most important problems and driving the company's growth strategy forward.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline