Freshworks Lays Off 500 Employees Amid AI-Led Restructuring Push
The company had around 4,500 full-time employees as of December 31, 2025.
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Freshworks has laid off around 500 employees, representing about 11% of its global workforce, as the Nasdaq-listed software-as-a-service company restructures its operations amid growing adoption of artificial intelligence across the industry.
The job cuts will be implemented across global teams and are expected to result in one-time restructuring charges of nearly USD 8 million. The company had around 4,500 full-time employees as of December 31, 2025.
Chief Executive Officer Dennis Woodside said the restructuring reflects both strategic realignment and the rising role of AI in software development. “More than half of our code is now generated through AI tools, which has significantly reduced development cycles and routine manual work,” Woodside said during the earnings call.
He added that the company is sharpening its business focus. “We recently consolidated our go-to-market strategy and rebalanced our teams more towards EX,” he said, referring to Freshworks’ Employee Experience division.
Freshworks said it plans to channel the savings from the restructuring into strengthening its Employee Experience business, including its IT service management platform Freshservice, as it focuses on enterprise growth.
This is the second major layoff round at the company in less than two years. In November 2024, Freshworks had reduced its workforce by around 660 employees, or nearly 13%, as part of a broader efficiency drive linked to AI-led transformation.
Alongside the restructuring, Freshworks reported steady financial performance. Revenue for the first quarter of 2026 rose 16% year-on-year to USD 228.6 million, beating analyst estimates of USD 223.24 million.
The company expects second-quarter revenue between USD 232 million and USD 235 million, slightly above market expectations, indicating stable demand despite ongoing restructuring.
Freshworks has laid off around 500 employees, representing about 11% of its global workforce, as the Nasdaq-listed software-as-a-service company restructures its operations amid growing adoption of artificial intelligence across the industry.
The job cuts will be implemented across global teams and are expected to result in one-time restructuring charges of nearly USD 8 million. The company had around 4,500 full-time employees as of December 31, 2025.
Chief Executive Officer Dennis Woodside said the restructuring reflects both strategic realignment and the rising role of AI in software development. “More than half of our code is now generated through AI tools, which has significantly reduced development cycles and routine manual work,” Woodside said during the earnings call.
Entrepreneur Staff • Editor
Entrepreneur Staff
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