Freshworks has announced to lay off 13% of its workforce or 660 employees, as part of its efforts to streamline operations. The US-based IT company has more than 5,000 employees at the moment. CEO Dennis Woodside wrote a letter to the company's staff, informing them about the job cuts that will impact its staff across the US, India and its other locations. The letter was published by Freshworks in a regulatory filing with the US Securities and Exchange Commission (SEC) reporting the company’s quarterly earnings.
What CEO Dennis Woodside said in the letter
In the letter, Freshworks CEO Dennis Woodside wrote “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 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. The Company expects that the Plan will be substantially complete by the end of the fiscal year ending December 31, 2024.”
Woodside, who joined as the CEO on May 1 after founder Girish Mathrubootham had stepped down, said "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," he stated.
"We began by combining teams focused on customer experience (CX) products, including support, sales and marketing, and reallocating people and investments to prioritise our fastest growing 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".
What CEO Dennis Woodside said in the letter
In the letter, Freshworks CEO Dennis Woodside wrote “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 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. The Company expects that the Plan will be substantially complete by the end of the fiscal year ending December 31, 2024.”
Woodside, who joined as the CEO on May 1 after founder Girish Mathrubootham had stepped down, said "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," he stated.
"We began by combining teams focused on customer experience (CX) products, including support, sales and marketing, and reallocating people and investments to prioritise our fastest growing 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".
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