Freshworks cuts 11 percent workforce despite strong Q1 results. The SaaS company laid off approximately 500 employees while reporting 14 percent revenue growth to $228.6 million, beating its own estimates. CEO Dennis Woodside attributed the restructuring to AI and automation integration, consolidating overlapping roles, and streamlining product development. This marks the second major layoff in two years, following a 13 percent reduction in 2024. The company narrowed its operating loss to $8.1 million from $10.4 million year-over-year and raised full-year guidance to 14-15 percent growth. Freshworks expects $8 million in restructuring charges as it reallocates resources from its customer experience business to its employee experience division while leveraging AI to reduce headcount needs in development.
