In its ongoing efforts to navigate through the macroeconomic challenges, Freshworks, a SaaS company, has recently implemented a new wave of job cuts. This is the third round of layoffs from the SaaS company and this time, all the layoffs have been attributed to company’s performance evaluation process.
The decision is going to affect employees in its product, engineering, and go-to-market (GTM- encompasses marketing, strategy, and enablement functions) divisions based in the United States, according to sources familiar with the matter who spoke to Moneycontrol.
Reports also suggest the affected individuals in this round of layoffs are primarily at senior levels, including senior directors, product managers, and senior vice presidents from teams such as GTM. Besides, the majority of the impacted employees are also from the mid-market sector.
The exact number of laid off employees is still in the dark, however, as per a mentioned statement of the company’s employee, the senior vice president based in the US was also let go without making any official announcements. Moreover, some individuals also left the WhatsApp groups, and the existing employees were informed later about the situation.
The move comes as the company navigates to reduce its expenses. In March 2023, the company announced its second round of job cuts, affecting approximately 114 employees due to performance evaluations. Additionally, in December of the previous year, Freshworks reduced its workforce by 2 per cent, equating to 90 individuals, in order to streamline costs.
Globally, Freshworks has a workforce of approximately 5,000 employees.
The SaaS industry in India and globally is feeling the impact of slowing demand growth, potentially due to an upcoming global recession. Examples of companies that have been affected include Chargebee, which reported a significant increase in its workforce from 400 employees in 2019 to over 1,000 in 2022. Freshworks also experienced rapid employee growth, expanding from 1,000 employees in 2019 to 4,000 in 2022. Furthermore, in January 2023, Bengaluru-based Exotel laid off around 142 employees.