Freshworks, a Nasdaq-listed software-as-a-service (SaaS) company has announced to cut its workforce by laying off 660 employees worldwide or 13 per cent of its staff, as per a letter written by CEO Dennis Woodside to employees. The layoffs will also have an impact on the firm’s Indian employees.
At present, Freshworks has more than 5,000 employees worldwide. The firm has announced many rounds of layoffs since last year.
The board of directors have approved a $400 million share buyback programme, the company notified.
“In November 2024, the company committed to a restructuring plan (the plan) to better align the company’s talent with its strategic priorities and to improve operating efficiency. The company estimates that this will result in an approximately 13% reduction in headcount and approximately $11 million to $13 million in charges in the fourth quarter of 2024, consisting primarily of cash expenditures for separation-related payments, employee benefits and related costs,” Woodside wrote in the letter.
The firm also shared the letter with the US Securities and Exchange Commission in a regulatory filing.
Freshworks anticipates the restructuring to be finished by the end of the financial year ending December 31, 2024.
“One of the first things our board of directors asked me to do when I became CEO five months ago was to assess our strategy and ensure we’re focused on the most critical drivers of our business. This work resulted in our three strategic imperatives (our employee experience business, AI and our customer experience business) and gave us a clear view into where we need to simplify the way we work and operate more efficiently,” Woodside stated.
In the letter, he also stated that the firm started by merging teams focused on customer experience (CX) products, comprising sales and marketing, support and reallocating people and investments to prioritize our swiftly rising employee experience (EX) business.
“These decisions were made thoughtfully and carefully to set a strong foundation for our future. 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,” he added.
Freshworks’ revenue increased 22 per cent to $186.6 million from July-September in 2024 as compared to $153.6 million from July-September in 2023.
