Sat Nov 09 07:06:18 UTC 2024: ## Zoho Founder Criticizes Freshworks Layoffs Amidst Buyback, Highlights Company’s “Naked Greed”
**Chennai, India -** Zoho founder Sridhar Vembu has publicly criticized Freshworks for its recent layoffs and subsequent stock buyback, accusing the company of prioritizing shareholder interests over employee well-being. Vembu expressed his disapproval on X (formerly Twitter), stating that Freshworks, with over $1 billion in cash reserves and a 20% growth rate, has “naked greed” for laying off 12-13% of its workforce while simultaneously announcing a $400 million buyback.
Vembu questioned Freshworks’ leadership, asking if they lack the “vision and imagination” to invest in new ventures instead of laying off employees. He also contrasted Zoho’s philosophy, stating that they prioritize customers and employees over shareholders, which is why the company remains private.
Freshworks, in response to its financial performance and strategic priorities, announced a 13% workforce reduction on November 7, impacting approximately 660 employees. The company, which has conducted multiple rounds of layoffs since 2024, has stated that the move is aimed at improving efficiencies and reducing complexities across teams.
The public criticism from Zoho’s founder comes amidst a history of tension between the two companies. Freshworks founder Girish Mathrubootham previously worked at Zoho before establishing his own company in 2010. In 2020, Zoho filed a lawsuit against Freshworks, alleging that the company stole confidential information. While the case was settled in 2021, it highlights the ongoing rivalry between the two tech giants.
Vembu’s vocal criticism of Freshworks raises important questions about corporate responsibility and the balance between shareholder value and employee welfare. It remains to be seen how this public dispute will affect both companies’ reputation and future strategies.
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