Freshworks has announced a global workforce reduction of approximately 11%, resulting in the layoff of about 500 employees. The San Mateo-based software-as-a-service company disclosed the restructuring plan on May 5, 2026, alongside its first-quarter earnings report. This decision marks the second major reduction for the firm under CEO Dennis Woodside, following a previous round of cuts in late 2024.
The company stated that the move is part of a broader effort to streamline operations and align its resources with the evolving demands of the software industry. CEO Dennis Woodside highlighted that artificial intelligence has become integral to the company’s internal operations and development processes, noting that over half of its code is now generated by AI. By consolidating overlapping go-to-market teams and reducing management layers, the company aims to improve operational efficiency and accelerate its competitive positioning.
Freshworks expects to incur approximately $8 million in one-time restructuring charges, which are primarily related to severance and employee benefits. The company plans to substantially complete the reorganization by the end of the second quarter of 2026. Savings generated from these efficiencies are expected to be reinvested into the company’s growing Employee Experience division, which includes the Freshservice IT management platform. While specific teams or regions were not isolated, the layoffs will affect operations across the firm’s global presence.
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