Freshworks asks 660 employees to leave as part of global realignment

The move is expected to result in $11 million to $13 million in charges in the fourth quarter of 2024, consisting primarily of cash expenditure for separation-related payments, employee benefits and related costs [View in browser]( [See all newsletters]( 07 November 2024 Freshworks asks 660 employees to leave as part of global realignment [freshworks nasdaq listing] The Chennai/US-based IT company Freshworks on Wednesday announced a 13 per cent reduction in its global workforce, which will impact 660 employees, CEO & President, Dennis Woodside, said in an email to employees. A majority of its employees work in India. In November 2024, the company committed to a restructuring plan (the Plan) to better align its talent with its strategic priorities, and to improve operating efficiency. The move is expected to result in $11 million to $13 million in charges in the fourth quarter of 2024, consisting primarily of cash expenditure for separation-related payments, employee benefits and related costs. The plan will be substantially complete by the end of the fiscal year ending December 31, 2024, says a company filing with the US Securities and Exchange Commission. “To deliver on our strategic priorities around EX, AI and CX, we are realigning our global workforce, putting us on a path to have an even bigger impact for our customers. As a result of this, we have made the decision to reduce our headcount by 13 per cent,” he said. Making this decision “There’s simply no good time to make a decision like this that affects people’s lives and it’s my responsibility to be transparent about how and why this decision was made. I am immensely grateful to those who will be leaving for their significant contributions to Freshworks. While this is likely an unexpected way to end your time here, I hope you leave feeling proud of the impact you’ve had,” he said. “One of the first things our Board of Directors asked me to do when I became CEO five months ago was to assess our strategy and ensure we’re focused on the most critical drivers of our business. This work resulted in our three strategic imperatives (our Employee Experience business, AI and our Customer Experience business) and gave us a clear view into where we need to simplify the way we work and operate more efficiently. We began by combining teams focused on Customer Experience (CX) products, including support, sales and marketing, and reallocating people and investments to prioritise our fastest growing Employee Experience (EX) business. These decisions were made thoughtfully and carefully to set a strong foundation for our future,” the letter said. “To add more focus on our EX, AI and CX priorities, we are realigning our global workforce, putting us on a path to have a bigger impact for our customers. We’re making these changes while our 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.” Informing impacted employees Employee notifications happen on different timelines in each country. In the US and India, employees whose roles are being impacted will receive a meeting invitation called ‘Transition Discussion’. These conversations will happen on Wednesday in the US and Thursday in India. Departing employees can expect to have a conversation with a leader in their organisation. In countries outside of the US and India, this process may take longer due to local laws and practices. Supporting our impacted employees “Transitioning employees may receive financial, medical and career support, including severance pay that’s based on years of service, continued healthcare coverage and Employee Assistance Program support, career transition support as they look for their next opportunity, and immigration support, where applicable. How we do this will vary based on local laws and customs,” he said. You Might Also Like [As Trump makes historic return, world braces for new era]( [World]( [As Trump makes historic return, world braces for new era]( [India could face trade skirmishes under Trump 2.0 offset by China+1 strategy]( [News]( [India could face trade skirmishes under Trump 2.0 offset by China+1 strategy]( [IT industry sees no threat in Trump’s winning US poll]( [Info-tech]( [IT industry sees no threat in Trump’s winning US poll]( [Memes sum up US polls verdict memorably]( [Variety]( [Memes sum up US polls verdict memorably]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](