This week in CX has seen layoffs at Feshworks, a new CEO for Sprinklr, financial troubles for Afiniti, and a war of words between Shopify and Salesforce.
Here are extracts from some of our most popular news stories over the past seven days.
Freshworks Reports “Strong” Growth, Then Lays Off 13% of Its Employees
Freshworks is letting 13 percent of its staff go following the decision to raise its annual revenue and profit forecasts.
The layoffs equate to 660 employees, with the company stating that the realigning of its global workforce will allow the business to have a more significant impact on its customers.
The decision followed the release of “strong” Q3 results that saw Freshworks achieve 22 percent year-on-year revenue growth.
Following the results and layoffs, the vendor saw its share price jump 15 percent.
Nevertheless, in an open letter to employees posted on the vendor’s website, Dennis Woodside, CEO of Freshworks, stressed that the decision was “difficult”.
Moreover, it was intentionally made at a time when the “business is profitable and our AI-powered products are providing increasing customer value.”
Having taken over the reins less than five months ago, Woodside explained that the decision to make the cuts was linked to an evaluation of the company’s strategy to ensure that it is focused on the most critical drivers of its business (Read on…).
Sprinklr Appoints Rory Read as CEO, Scraps Its Co-CEO Strategy
Sprinklr has confirmed the appointment of Rory Read as the company’s new CEO and President, effective immediately.
The former Vonage head honcho will take over from current co-CEOs Ragy Thomas and Trac Pham.
Thomas will transition to the role of Advisor to the CEO and continue to serve as Founder and Chairman of the Board.
Pham, on the other hand, will move into an unspecified “advisory” position and step away from the Board of Directors.
In a LinkedIn post, Thomas wrote that the move was “an exciting new chapter for Sprinklr that will continue our momentum and achieve what we’ve always known is possible.”
Rory is an exceptional leader capable of driving transformational change and sustainable growth.
With a resume of high-profile positions at the likes of IBM, Lenovo, and Dell, Read shot to prominence in July 2020 when he took over as CEO at Sprinklr’s CCaaS rival Vonage (Read on…).
Afiniti Files for Bankruptcy, A Warning to the AI CX Industry
Afiniti has filed for Chapter 15 bankruptcy in the US.
Chapter 15 bankruptcy is a way to ask for help from a court in the US to protect the business while it evaluates how to pay back the money it owes, both in the US and elsewhere.
With a reported $580 million in liabilities, the Bermuda-based AI customer experience vendor lodged its petition in the U.S. state of Delaware, having gone into provisional liquidation in Bermuda back in September.
In gaining Chapter 15 bankruptcy recognition in the U.S., Afiniti will shield the company’s American assets while it negotiates with the U.S. courts.
Afiniti confirmed the filing in an official announcement on its website, stating that it had “initiated the next steps” in its balance sheet restructuring and recapitalization processes.
Hassan Afzal, CEO of Afiniti, claimed that this would allow the vendor to strengthen its “financial foundation and position us well for future growth and success.
Afzal also thanked Afiniti’s customers and advised that the business will continue to operate as usual throughout the restructuring process (Read on…).
Shopify Brags About Poaching “Hundreds” of Salesforce Customers, Salesforce Claps Back
Shopify has claimed that it has taken “hundreds” of Salesforce’s customers.
The eCommerce giant has long been associated with providing smaller, mom-and-pop businesses with an easy-to-use online shopping platform … until now.
Recently, the company has been making a concerted effort to target large-scale businesses and is now boasting about poaching the likes of Toys R Us and Casper (mattress seller) from Salesforce.
As part of what Shopify is calling “the mass migration” the company is attempting to lure businesses away from its more established enterprise rivals through its lower prices.
Indeed, during an interview with Bloomberg, Shopify’s Chief Operating Officer, Kaz Nejatian, took a shot at Salesforce’s costly business practices:
The reason most enterprise software is so expensive is because it takes so many steak dinners to put it in your hand.
Aside from the first-hand brags and digs at Salesforce’s expense, others have jumped to support Shopify’s claims (Read on…).
