Freshworks cuts 500 jobs amid push to automate with AI
Business
Freshworks is letting go of 500 employees (about 11% of its team) as it leans harder into AI to automate work.
This marks the company's biggest shake-up since 2024, when it cut 660 roles.
Freshworks revenue up 16%
The layoffs will cost Freshworks a one-time $8 million, but the company's revenue actually jumped 16% this year to $228.6 million, beating expectations.
CEO Dennis Woodside says AI has made development much faster and now plays a role in over half its big customer deals.
Still, despite these tech wins, Freshworks's market value has dropped steeply since its $10 billion IPO peak in 2021 and now sits at $2.6 billion.