- By Shivam Shandilya
- Thu, 07 Nov 2024 04:55 PM (IST)
- Source:JND
Layoffs At Freshworks: Freshworks has announced to lay off 13 percent of its workforce, which is equal to 660 workers, reports the Times of India. According to the report, the layoff is being done as part of its efforts to streamline operations.
The IT company has over 5,000 employees presently. Company CEO Dennis Woodside, in a letter to the company's staff, wrote 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.
As part of the restructuring plan, Freshworks expects to incur charges of around $11 million to $13 million in Q4 2024, mainly attributed to separation-related payments and employee benefits. The company aims to complete the restructuring plan by the end of December 2024.
The company had also reduced its headcount in March and June 2023, and it had also laid off 90 employees in December 2022, including about 60 from its India teams.
CEO Dennis Woodside's Letter To Employees
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.”
"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, as quoted by the Times of India.
"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," Woodside further added.