Sat Nov 09 07:06:17 UTC 2024: ## Freshworks Lays Off 13% of Workforce, Faces Backlash from Zoho Founder

**Chennai, India -** SaaS giant Freshworks has announced a 13% reduction in its workforce across all locations, including India and the US, sparking controversy and drawing criticism from Zoho founder Sridhar Vembu. The move comes as the company struggles to improve profitability despite revenue growth.

Freshworks reported a widening operating loss in its third quarter, reaching $38.9 million compared to $38.7 million in the same period last year. Though the company’s total revenue for the quarter increased by 22% to $186.6 million, the layoff decision highlights concerns about the company’s financial health.

Freshworks CEO Dennis Woodside stated that the job cuts are expected to cost the company between $11 million to $13 million in the upcoming quarter, including severance payments and other expenses.

Zoho founder Sridhar Vembu took to X (formerly Twitter) to express his disapproval, criticizing Freshworks for adopting what he calls “US corporate tactics”. Vembu argues that a company with a cash reserve of $1 billion, growing at a decent rate, and generating a cash profit, should not be resorting to layoffs.

“A company that has $1 billion cash… and is actually still growing at a decent 20% rate and making a cash profit, laying off 12-13% of its workforce should not expect any loyalty from its employees ever,” Vembu stated. He further emphasizes his belief that Freshworks’ decision is a result of importing “the worst of the US corporate world” to India, a practice he condemns.

Vembu’s criticism comes as other major companies like KPMG, Mozilla Foundation, and Samsung have announced layoffs in recent months. The layoff trend, fueled by economic uncertainty and fears stemming from the Ukraine war, continues to impact the tech sector.

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