Zoho CEO denounces job cuts at Freshworks: 'This is not that situation, this is pure greed...'

Zoho CEO Sridhar Vembu recently shared a post on microblogging site Although Vembu does not mention the company by name in his
In announcing the layoffs in an SEC filing, Freshworks also said its board of directors had approved a $400 million stock repurchase program of its outstanding Class A common stock. In his post, the Zoho CEO mentioned the $400 million share buyback, implying that the company he is talking about is Freshworks.

This is what the CEO of Zoho wrote about X

A company that has $1 billion in cash, which is about 1.5 times annual revenue, and is actually still growing at a decent 20% and making a cash profit while laying off 12 to 13% of its workforce, should not expect some loyalty from its employees. employees ever. And to make matters worse, it can afford $400 million in stock buybacks.

I can understand the unfortunate reality of layoffs when a company is struggling or declining and making a loss. This is not that situation, this is naked greed, nothing less.
Here’s a critical question for leadership: Don’t you have the vision and imagination to invest $400 million in another industry where you can use the people you hired but don’t want anymore? Are there no such possibilities in technology? Do you have so little curiosity, vision and imagination? Do you have so little empathy?

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This behavior has unfortunately become all too common in American business and we are importing it to India. In the US it has only resulted in large-scale cynicism among employees and we import that too.

This is why you choose to remain private. We put our customers and employees first. Shareholders should come last.

What the CEO of Freshworks said about the job cuts

More than 5,000 people work at Freshworks. In the SEC filing letter, Fresh Works CEO says Dennis Woodside wrote “In November 2024, the Company committed to a restructuring plan (the Plan) to better align the Company’s talent with its strategic priorities and improve operational efficiencies. The company estimates that this will result in a workforce reduction of approximately 13% and approximately $11 million to $13 million in costs in the fourth quarter of 2024, primarily consisting of cash expenses for separation-related payments, employee benefits and related costs. The company expects the plan to be substantially completed by the end of the fiscal year ending December 31, 2024.”

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