Sat Nov 09 14:07:26 UTC 2024: ## Zoho Founder Slams Corporate Greed: “Naked Greed” Behind Freshworks Layoffs

Sridhar Vembu, founder of Indian tech giant Zoho, has launched a scathing attack on companies that prioritize shareholder returns over employee well-being. Vembu specifically called out Freshworks, a fellow Indian SaaS company, for laying off 13% of its workforce despite reporting strong financial results and announcing a $400 million stock buyback.

Vembu argues that such actions are driven by “naked greed” rather than financial necessity. He points to Freshworks’ 28% surge in share price and positive Q3 results as evidence that the company is financially sound. He contrasts this with companies like Nvidia and AMD, which prioritized long-term talent retention and ultimately achieved success through sustained investment in their employees.

Vembu’s criticism extends beyond Freshworks, targeting the broader trend of tech companies prioritizing short-term financial gains at the expense of their workforce, particularly in the U.S. He advocates for a more ethical approach to capitalism, one that prioritizes employees who are ultimately responsible for a company’s success.

As the founder of Zoho, a privately held company, Vembu emphasizes the benefits of a long-term focus on employees and customers. He believes that this approach has allowed Zoho to build a loyal workforce and customer base, ultimately leading to sustainable growth.

Vembu’s message serves as a wake-up call for companies to reconsider their priorities. He argues that while stock buybacks and layoffs might offer short-term financial benefits, they can ultimately damage a company’s core asset: its people. He urges companies to explore alternative strategies to layoffs, such as innovation and exploring new business lines, to sustain their workforce.

Ultimately, Vembu believes that a truly ethical capitalism must prioritize people. He hopes that the example of Zoho will inspire other companies to adopt a more humane and long-term approach to business, ensuring that people are not merely seen as disposable assets in pursuit of short-term financial gains.

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