Layoffs likely at product software company Freshworks amid reorganisation

“We are undertaking a reorganisation and it is likely that there could be some impacted folks. We don’t have a number as of now but it is very likely that it is a small number,” a person aware of the internal reorganisation to correct redundancies at Freshworks told ET.

Freshworks, a Software-As-a-Service company selling customer and employee engagement software primarily to American businesses, recorded a 37% growth in Q3 revenue amid a ‘challenging macro environment,’ according to CEO Girish Mathrubootham.

A person aware of the reorganisation said Freshworks was trying to match skills to demand across teams and the exercise may lead to some employees getting impacted. “We are trying our best to see if we can accommodate folks whose skills can be better utilised in other teams. That is the effort going on now.”
Mathrubootham in the Q3 earnings call had said that businesses across sectors were being impacted because of the slowness in customer decision making in the US. Freshworks CEO also said that the company was not immune to the challenging macro environment, compounded by factors like increasing inflation, war in Ukraine and others.

Freshworks currently employed 4000 people across India, US, Europe (with offices in Berlin among others), and Australia New Zealand region.

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Recently, revenue management and subscription billing software company Chargebee said it was letting go of 10%, amid the growing need to accelerate on the path to profitability. Mumbai-based SaaS company Netcore had put off its IPO decision to a later date.

Freshworks was the second Indian origin company after the Subrah Iyer-founded WebEx to list on the Nasdaq. The company’s market cap was at $4.3 billion on the exchange, with Wednesday’s closing price at $15.15 a piece.