Freshworks Announces 500 Job Cuts Amid AI-Driven Restructuring
‘Over half of our code is written by AI’: Freshworks CEO as SaaS firm announces 500 job cuts
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Freshworks, a cloud-based software-as-a-service company founded in Chennai, Tamil Nadu, India, will cut 11% of its workforce, totaling around 500 jobs, due to advances in artificial intelligence (AI) and automation. The restructuring, costing approximately $8 million, aims to enhance profitability and reinvest in employee experience initiatives.
- 01Freshworks will reduce its global workforce by 11%, impacting both India and the US.
- 02The layoffs are part of a restructuring costing $8 million.
- 03CEO Dennis Woodside noted that over half of the company's code is written by AI.
- 04The tech sector has seen over 93,200 layoffs in 2026 so far.
- 05Freshworks expects Q2 revenue to be between $232 million and $235 million.
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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.
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The layoffs will affect employees in both India and the US, reflecting a shift in the tech industry towards automation, which may lead to increased job insecurity in the sector.
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