Sat Nov 09 10:47:51 UTC 2024: ## Zoho Founder Slams Freshworks Layoffs Amidst Company’s Financial Success
Freshworks, a leading software company, has announced layoffs affecting 13% of its global workforce. The company cited a need to realign its focus on customer experience, artificial intelligence, and employee experience as the reason for the job cuts.
However, the decision has been met with criticism from Sridhar Vembu, founder of Indian tech giant Zoho. In a post on X, formerly known as Twitter, Vembu questioned the rationale behind the layoffs, pointing out that Freshworks boasts a billion dollars in cash reserves, a 20% growth rate, and a positive cash flow.
“A company that has $1 billion cash…and is actually still growing at a decent 20 per cent rate and making a cash profit, laying off 12-13 per cent of its workforce, should not expect any loyalty from its employees ever,” Vembu wrote.
He further accused Freshworks of prioritizing greed over employee well-being, stating, “This is not that situation, this is naked greed, nothing less.”
The two companies have a history of rivalry, including a legal battle in 2020 where Zoho accused Freshworks of stealing confidential data.
Freshworks CEO Dennis Woodside defended the decision, stating that the layoffs were part of a strategic realignment to enhance customer impact.
This move by Freshworks comes as a surprise given the company’s strong financial performance. The company reported a 22% revenue growth in the third quarter, reaching $186.6 million.
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