Freshworks to Lay Off 500 Employees on AI Automation

Freshworks, a cloud-based software company, announced plans to lay off about 11 percent of its global workforce, or roughly 500 employees, as artificial intelligence automates more than half of its coding work. The restructuring, disclosed during the firm's first-quarter earnings call on May 6, 2026, affects roles across engineering, sales and other departments worldwide and will incur one-time charges of $8 million, mostly recognized this quarter.

The cuts come despite strong financial results for the January-to-March period. Revenue rose 16 percent year-over-year to $228.6 million, surpassing analyst estimates of $223.24 million. However, the company reported an operating loss of $8.1 million and a net loss of $4.8 million, compared with smaller losses a year earlier. This marks the second major workforce reduction in two years; Freshworks cut 13 percent of staff in 2024.

Chief Executive Dennis Woodside attributed the decision to two main factors. "We recently consolidated our go-to-market strategy," he said, explaining a shift toward the employee experience (EX) business, which relies more on outbound sales, while improving profitability in the customer experience (CX)...