Freshworks Announces Workforce Reduction to Focus on EX, AI, and CX

Alayaran.com - In a strategic move to prioritize Employee Experience (EX), Artificial Intelligence (AI), and Customer Experience (CX), Freshworks, a prominent software firm, has decided to cut approximately 660 jobs, which constitutes 13% of its global workforce. This decision was communicated by CEO Dennis Woodside in a memo to employees on Tuesday.

The layoffs are part of Freshworks' broader initiative to streamline operations and reduce costs while focusing on areas critical for future growth. CEO Woodside described the decision as tough but necessary, stating, "There’s simply no good time to make a decision like this that affects people’s lives."

Despite the company's profitability and the increasing value provided by its AI-driven products, the restructuring aims to enhance operational efficiency. Woodside highlighted that the company had started by merging teams responsible for CX products, reallocating resources to bolster the rapidly expanding EX business.

"This strategic shift was the result of a comprehensive review of our business strategy, which began shortly after I took the helm as CEO five months ago," Woodside explained. The focus is now on nurturing the EX sector while aligning customer-centric teams to foster innovation in AI and CX.

The layoffs will be executed according to local legal frameworks, with employees in the US and India being informed through a scheduled "Transition Discussion" this week. Freshworks is committed to supporting the affected employees by offering severance pay, extended healthcare benefits, career transition services, and immigration support where necessary.

Expressing his gratitude, Woodside said, "We deeply appreciate the significant contributions of those affected by this decision and remain committed to supporting them through this transition."

This restructuring is part of Freshworks' ongoing efforts to optimize its operations and reinforce its market position, aiming for a more efficient and scalable business model in the future.