Fri Nov 08 22:05:19 UTC 2024: ## Zoho Founder Slams Freshworks Layoffs, Warns of “Naked Greed” Seeping into India
Zoho founder Sridhar Vembu has sharply criticized Freshworks’ recent decision to lay off 660 employees, warning that the “naked greed” of corporate America is infiltrating Indian businesses.
Vembu, whose company has a strong commitment to its employees, took to social media to express his outrage. He specifically slammed Freshworks for laying off workers despite reporting a 22% revenue increase and holding a $1 billion cash reserve. “A company that has $1 billion cash… and is actually still growing at a decent 20% rate… laying off 12-13% of its workforce should not expect any loyalty from its employees ever,” Vembu stated.
He further criticized Freshworks’ $400 million stock buyback, questioning the company’s lack of vision in investing that money in new ventures and utilizing the laid-off workforce. Vembu argued that companies with substantial cash reserves should prioritize employee retention and invest in new projects instead of resorting to layoffs.
Zoho, a privately-held company, prides itself on its employee-centric approach. Vembu highlighted the benefits of being private, stating that it allows the company to avoid shareholder pressure and prioritize customer and employee needs. He believes that the “shareholder first” mentality, driven by private equity and Wall Street, is detrimental to employee morale and ultimately unsustainable.
Vembu’s comments raise concerns about the growing influence of short-term profit maximization on Indian businesses, potentially leading to a “use and throw” culture that erodes employee loyalty and well-being. He warns that such practices are socially unsustainable and ultimately detrimental to both companies and their employees.
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