Delhi Delhi. Software-as-a-Service (SaaS) major Freshworks is set to cut its workforce by 13% or 660 employees. The move is a part of the company's efforts to streamline operations. According to the letter written by CEO Dennis Woodside, the job cuts will apply to countries including the US, India and elsewhere. The letter was filed with the US Securities and Exchange Commission (SEC), where the company reported its quarterly earnings. As of now, the US-based IT company has a workforce of 5,000 employees globally.
Freshworks CEO Dennis Woodside wrote, “In November 2024, the Company committed to a restructuring plan (Plan) to better align the Company’s talent with its strategic priorities and improve operational efficiency. The Company estimates this will reduce headcount by approximately 13% in the fourth quarter of 2024 and reduce charges of approximately $11 million to $13 million, primarily consisting of severance-related payments, employee benefits and related costs. Cash expenses are included. “The company expects the plan to be substantially completed by the end of the financial year ending December 31, 2024.”
Woodside became CEO after founder Girish Mathrubootham decided to step down from his position. He said, “When I became CEO five months ago, one of the first things our board of directors asked me to do was assess our strategy and ensure we were focused on the most important drivers of our business. This work resulted in our three strategic imperatives (our employee experience business, our AI and our customer experience business) and gave us a clear vision of how we needed to simplify the way we work and operate more efficiently. Where is the need.”
“We started by combining teams focused on customer experience (CX) products, including support, sales, and marketing, and reallocated people and investments to prioritize our fastest-growing employee experience (EX) business. These decisions were made thoughtfully and carefully to lay a strong foundation for our future, as we realign our global workforce to focus more on our EX, AI and CX priorities. “Leading us on a path to greater impact for customers.”
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