Sat Nov 09 15:49:25 UTC 2024: ## Zoho Founder Slams Freshworks Layoffs as “Naked Greed”
**Chennai, India** – Zoho Corporation founder Sridhar Vembu has launched a scathing critique of Freshworks’ recent layoffs, accusing the company of prioritizing shareholder profits over employee well-being. Despite reporting a 22% revenue increase and holding substantial cash reserves, Freshworks laid off 13% of its workforce, around 660 employees, citing the need to “streamline operations.”
Vembu, in a social media post, labelled the move “naked greed,” arguing that it reflects a concerning trend of American corporate influence infiltrating Indian businesses. He questioned the necessity of layoffs given the company’s financial stability and growth, particularly during a time when resources should be directed towards supporting employees.
“A company that has $1 billion cash, which is about 1.5 times its annual revenue, 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 wrote.
His criticism is centered on the “shareholder-first” philosophy, which he believes prioritizes profits over employee security and morale. This approach, popularized by the Friedman Doctrine, cultivates a culture of cynicism and division within the workforce, according to Vembu.
He specifically targeted Freshworks’ $400 million stock buyback program, arguing that the funds should be invested in new business lines that could create opportunities for existing employees. “Don’t you have the vision to invest $400 million in another line of business where you can deploy those people you hired?” he asked.
In contrast, Vembu highlighted Zoho’s privately held structure, which allows the company to prioritize employees and customers over shareholders. This structure enables Zoho to avoid pressures from Wall Street and private equity investors that could lead to short-term profit maximization at the expense of employee morale.
Vembu’s comments shine a spotlight on the growing debate around corporate responsibility and employee welfare in the tech industry, particularly amidst a global economic downturn. His critique of Freshworks serves as a cautionary tale about the potential pitfalls of prioritizing short-term gains over sustainable growth and employee well-being.
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