Nov 08, 2024 05:48 PM IST
Zoho CEO Sridhar Vembu condemned Freshworks for its latest layoffs, accusing it of prioritising shareholder pursuits over worker welfare.
In a veiled dig at Chennai-based Freshworks, Zoho founder Sridhar Vembu slammed the corporate for its “naked greed” after it laid off 660 individuals in shock layoffs, a day after it introduced a $400-million buyback and its shares soared 28%.
Whereas Shridhar Vembu didn’t title Freshworks in his X publish, he known as out a agency with over a billion {dollars} within the financial institution.(Picture through X)
Whereas Vembu didn’t title Freshworks in his X publish, he stated {that a} agency with over a billion {dollars} within the financial institution is selecting to prioritise shareholders by shedding workers. He stated after such a transfer the corporate shouldn’t count on its workforce to stay loyal.
“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 percent rate and making a cash profit, laying off 12-13 percent of its workforce should not expect any loyalty from its employees ever. And, to add insult to injury, when it can afford $400 million in a stock buyback,” he wrote in a prolonged publish on X.
Check out his publish right here:
“I can understand the unfortunate reality of layoffs when a business is struggling or declining and making a loss. This is not that situation, this is naked greed, nothing less,” he stated.
Vembu got here down closely on the corporate asking if it lacked imaginative and prescient and empathy to make such a transfer. “Don’t you have the vision and imagination to invest $400 million in another line of business where you can deploy those people you hired but you don’t want anymore? Are there no such opportunities in tech? Are you so lacking in curiosity, vision and imagination? Are you so lacking in empathy?”
Dennis Woodside, CEO of Freshworks, had introduced on November 7 that the corporate will minimize its workforce by 13 p.c, which can see round 660 workers being laid off.
(Additionally learn: Mohandas Pai schooled by Zoho CEO Sridhar Vembu over ‘Bengaluru ignored’ comment)
The agency, which stated the transfer to extend effectivity, has over 5,000 workers and has performed a number of rounds of layoffs since 2024.
Curiously, Freshworks founder Girish Mathrubootham beforehand labored at Zoho earlier than he began his firm in 2010. The businesses have been at odds since 2020, after Zoho filed a lawsuit accusing Freshworks of stealing confidential info.
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