Freshworks, a prominent cloud-based software-as-a-service (SaaS) company based in Chennai, Tamil Nadu, India, announced plans to cut approximately 500 jobs, representing 11% of its global workforce. This decision is driven by the increasing use of artificial intelligence (AI) in product development and the automation of routine tasks. CEO Dennis Woodside emphasized that more than half of the company's code is now generated by AI, which has significantly reduced manual workloads. The restructuring is expected to incur one-time charges of about $8 million, primarily recognized in the second quarter of 2026. This move comes amid a broader trend of layoffs in the tech sector, with over 93,200 tech employees laid off in 2026 alone, a stark contrast to the 124,201 layoffs recorded in the entirety of 2025. Despite these challenges, Freshworks anticipates second-quarter revenues between $232 million and $235 million, slightly above analysts' expectations.