Sat Nov 09 09:07:42 UTC 2024: ## Zoho Founder Condemns Freshworks Layoffs, Citing “Naked Greed” and Lack of Vision
**Chennai, India** – Zoho founder Sridhar Vembu has publicly condemned the recent layoffs at Freshworks, a fellow Indian SaaS company, calling the decision “naked greed” and questioning the company’s leadership.
Freshworks announced last week it would cut 13% of its workforce, equivalent to 660 employees, despite having over $1 billion in cash reserves and a healthy growth rate. The layoffs came alongside a $400 million stock buyback that resulted in a significant surge in the company’s share price.
Vembu, in a series of posts on X (formerly Twitter), argued that Freshworks’ decision to lay off employees while boasting a strong financial position demonstrates a disturbing trend of prioritizing shareholder returns over employee welfare. He questioned why the company, with its substantial cash reserves, wouldn’t invest in new business areas or redeploy laid-off employees rather than focusing on stock buybacks.
“Don’t you have the vision and imagination to invest $400 million in another line of business where you can deploy those people you hired but you don’t want anymore?” Vembu asked, implying that Freshworks’ leadership lacks vision and empathy.
Vembu’s criticism extends beyond Freshworks, pointing to a growing trend of corporations prioritizing shareholder interests at the expense of employees, particularly in the United States. He sees this practice as detrimental to employee morale and loyalty.
In stark contrast, Vembu highlights Zoho’s commitment to long-term employee loyalty and customer satisfaction, emphasizing the company’s commitment to remaining privately held to avoid the pressures of Wall Street and maintain its core values.
The public condemnation from Vembu sheds light on a brewing tension between traditional corporate practices and the values of companies like Zoho, which prioritize long-term sustainability over short-term gains.
The situation also reflects a long-standing rivalry between Zoho and Freshworks, both of which are major players in the Indian SaaS landscape. The two companies have been embroiled in legal battles in the past, adding another layer of complexity to the current situation.
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