Freshworks has announced layoffs affecting about 11% of its global workforce, or roughly 500 employees, as the company shifts more of its operations toward artificial intelligence.
The SaaS company said the restructuring is part of its effort to adapt to rapid AI-driven changes in software development. Freshworks CEO Dennis Woodside noted that AI tools are now responsible for writing more than half of the company’s code, reducing the need for some engineering and support roles.
The job cuts will impact teams across multiple regions, including India and the United States. The company expects the restructuring to simplify operations and reduce costs, with savings being redirected toward growth areas such as its enterprise IT service management products.
Freshworks also reported steady revenue growth of around 16% in its latest quarter, though earnings slightly missed expectations. It has projected continued revenue growth in the coming quarter, signalling confidence in demand for its software solutions despite the restructuring.
The company estimates restructuring costs of around $8 million related to the layoffs.
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