Sat Nov 09 07:00:00 UTC 2024: ## Zoho Founder Sridhar Vembu Slams Freshworks Layoffs, Calls for Prioritizing Employees
**Chennai, India:** Zoho founder Sridhar Vembu has launched a scathing attack on Freshworks, criticizing the company’s recent layoffs and buyback announcement. Vembu argues that companies should prioritize their employees, their “most valuable asset,” and invest in long-term growth rather than shareholder value.
“A company with over a billion dollars in the bank that chooses to prioritize shareholders by laying off employees and announcing a buyback shouldn’t expect their workforce to remain loyal,” Vembu stated on social media. He cited examples of successful tech companies like Nvidia and AMD, who prioritized their engineers and built long-term success through deep tech.
Vembu went on to criticize the current system in the US, arguing that it’s a perversion of capitalism. “We bet other people’s money, and if we win we keep the gains. If we lose, we run to the Fed for bailouts,” he wrote. He also expressed concern about the increasing gap between CEO salaries and average employee wages, calling it unsustainable.
The controversy stems from Freshworks’ recent announcement to lay off 13% of its workforce, affecting around 660 employees. The company attributed this decision to strategic priorities focused on improving efficiencies and reducing complexities.
Zoho and Freshworks have a long-standing rivalry, with Freshworks founder Girish Mathrubootham previously working at Zoho before starting his own company. The two companies were embroiled in a legal battle in 2020 over alleged confidential information theft.
Vembu’s strong stance highlights the ongoing debate around corporate responsibility and the balance between shareholder value and employee well-being. He emphasizes the need for companies to prioritize their people and invest in sustainable, long-term growth.
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