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.”
We believe this will help us accelerate our growth and simplify the way we work, so that we’re running Freshworks in a way that’s efficient and scalable.
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 our business.”
The review led to the company defining three strategic imperatives: its employee experience, AI, and customer experience businesses.
Woodside was tasked with ensuring that each area was as streamlined and efficient as possible.
For those employees who have lost their jobs, the CEO confirmed that various forms of support will be available.
These include severance pay based on tenure, extended healthcare coverage, Employee Assistance Program access, career transition assistance, and, if needed, immigration support.
The specifics of these benefits will differ according to local laws and customs.
“The decision to part ways with members of our team is heavy. These colleagues and friends have been instrumental in building the company we are today,” he stated.
While words alone can’t soften this news, we are committed to treating all impacted employees with dignity, respect, and thoughtful support as they transition.
Nevertheless, a skeptic might conclude that the vendor was attempting to bury the news, announcing it just a day after the presidency of the United States was decided.
Another CX vendor that may have had a similar play is Avaya, which also initiated another round of layoffs this week.
