SaaS unicorn Freshworks, listed on NASDAQ, has reportedly experienced another round of layoffs in the US, affecting multiple teams. The company cited performance reviews as the reason behind the layoffs, which mainly impacted senior positions in the product, engineering, and go-to-market (GTM) teams, according to sources. The GTM team includes marketing, strategy, and enablement.
Employees learned about the layoffs through WhatsApp groups, as there were no formal announcements made. The exact number of employees affected by the layoffs remains unknown. Freshworks, when contacted for clarification, declined to comment on the specific workforce management actions but stated that there have been no organization-wide layoffs.
This marks the third round of layoffs at Freshworks within a span of six months, following similar actions taken in December 2022 and March 2023. In the December layoffs, around 90 employees, approximately 2% of the staff, were let go. While the number of impacted employees during the second round in March was not confirmed by the company, media reports estimated that around 114-125 staff members were affected.
Freshworks, founded in 2010, offers a suite of software solutions for customer service and support, customer engagement, and IT service management. The company employs over 5,000 individuals, as indicated on LinkedIn.
These recent layoffs come after Freshworks reported its first-ever adjusted operating profit in the January-March quarter of 2023, with a non-GAAP profit of $3.88 million. However, the company still experienced a net loss of $42.66 million during the same quarter. Freshworks’ co-founder and CTO, Shanmugam Krishnasamy, resigned in late 2022, and a replacement has yet to be appointed.
Freshworks’ shares closed at $15.67 per share on Friday, June 9. While the share price is higher than the previous year, it has declined by 66.48% compared to its listing price.
