Particle.news
Download on the App Store
9 ARTICLES
·
last mo.

Freshworks Cuts About 500 Jobs in AI-Driven Restructuring

The company says rapid use of generative tools is shrinking routine work, prompting a resource shift to its Employee Experience unit.

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Image
Image
Image

Overview

  • Freshworks, which announced the move Tuesday, will trim roughly 11% of its global staff and book about $8 million in one-time charges.
  • CEO Dennis Woodside said “over half of our code is written by AI,” pointing to automation that has reduced rote tasks in product and across operations.
  • Savings from combining sales teams and cutting management layers will be steered to the Employee Experience business, including the Freshservice IT service platform.
  • The company started region-by-region notifications, with workers in North America and India told to expect immediate updates and other regions following local rules.
  • Freshworks reported Q1 revenue up 16% to $228.6 million and forecast Q2 at $232–$235 million, as peers like Atlassian also reduce roles in response to AI-driven change.