he Freshworks platform which is listed in the Nasdaq Saas has recently announced that they are planning to have a 13% work reduction in order to streamline
its operations. This round of tech layoffs is about to affect almost 660 of the Freshworks employees in their worldwide operations.
Currently, the company has more than 5,000 employees split across different countries such as India, Germany, France, the U.S., the UK, and also in the UAE.
In a recent stock buyback exchange filing, the company stated that these tech layoffs decision is expected to most likely result in charges of between $ 11 million to $13 million in the Q4 of 2024, which is set to cover cash expenses for separation payments, employee benefits and for other related costs.
It should be mentioned that the Freshwork layoffs plan of Freshworks is expected to be finished by the end of the year.
“We began by combining teams focused on Customer Experience (CX) products, including support, sales, and marketing, and reallocating people and investments to prioritize our fastest growing Employee Experience (EX) business. These decisions were made thoughtfully and carefully to set a strong foundation for our future,” the CEO of Freshworks stated in the recent filing report.
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Denis Woodside, the CEO of Freshworks became the chief executive officer back in May this year after Girish Mathrubootham decided that it was time to step down from his role after 14 years of guiding.
Recently, the Freshwork company also made an announcement that the board of directors has approved a stock buyback program of about $400 million of the company’s Class A common stock.
However, for the Q3 that ended in September, the Freshwork revenue registered an increase of 7.16% to $186.57 million compared with $174.1 million registered in the June-end quarter. But in the course of this period, the company’s net losses experienced a rise of 49% to $29.96 million in comparison with $20.1 million registered in the previous quarter, after they managed to reduce the losses by 13%.
But if we compare the Q3 of the previous year, the Freshwork revenue has increased up to 21.5% from $153.5 million and their losses decreased by 3.4% from $31 million.
In the December quarter, the company is expected to have revenue between $187.8 million and $190.8 million to reflect an 18% yearly growth. Freshworks also mentioned that their full fiscal year will most likely end with a revenue of around $713 million.
By
Bill O'Neill
•
November 18, 2024 10:45 PM
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