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Criticism of Layoffs: Zoho founder Sridhar Vembu condemns Freshworks’ decision to lay off 660 employees.
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Profit Over People: Vembu questions Freshworks’ priorities, citing $1 billion cash reserves and 22% revenue growth.
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Leadership Failure: Vembu criticizes Freshworks’ $400 million stock buyback, urging investment in new projects instead.
Zoho founder Sridhar Vembu has strongly criticized Freshworks’ recent layoffs, labeling it “naked greed” and a reflection of corporate America’s flawed priorities. Despite Freshworks’ profitable growth and substantial cash reserves, Vembu argues that laying off 13% of its workforce is unjustifiable.
Vembu emphasized that companies prioritizing shareholder profits over employees will ultimately suffer from damaged morale and deep divisions. He highlighted Zoho’s private status, which allows it to prioritize customers and employees over shareholders.
Freshworks’ decision to lay off employees and announce a $400 million stock buyback sparked Vembu’s criticism. He suggested that companies with ample cash could explore new projects or pause hiring instead of cutting jobs.
Vembu’s comments resonate with concerns about the impact of corporate culture on employee well-being and societal sustainability.
A company that has $1 billion cash, which is about 1.5 times its annual revenue, and is actually still growing at a decent 20% rate and making a cash profit, laying off 12-13% of its workforce should not expect any loyalty from its employees ever. And to add insult to injury,…
— Sridhar Vembu (@svembu) November 7, 2024
