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Freshworks Slashes Jobs Amid AI and Automation Push
6 May
Summary
- Freshworks will lay off approximately 500 employees, about 11% of its global workforce.
- Restructuring aims to streamline product development and increase AI and automation use.
- The company reported strong Q1 revenue growth, exceeding its own estimates.
Freshworks has announced a workforce reduction of approximately 11%, affecting around 500 employees globally, as part of a strategic restructuring. This initiative aims to consolidate overlapping organizational efforts, streamline product development processes, and accelerate the adoption of AI and automation throughout the company.
This marks the third round of significant layoffs for the SaaS firm in recent years. The company anticipates incurring restructuring charges of approximately $8 million, with the majority expected in the second quarter. These actions are intended to sharpen the company's competitive edge and focus resources on key growth areas.
Despite the workforce adjustments, Freshworks reported exceeding its revenue estimates for the first quarter ended March 2026. Revenue grew 14% year-on-year to $228.6 million, driven by strong demand for its Employee Experience (EX) platform and AI Copilot offerings. The company also raised its full-year revenue guidance, reflecting confidence in its growth trajectory.
