“Zoho’s Sridhar Vembu Criticizes Indian Firm for Firing 660 Employees, Calls It ‘Naked Greed'”
Sridhar Vembu, the founder and CEO of Zoho, has publicly condemned Freshworks for its recent decision to lay off 660 employees, accusing the company of prioritizing shareholder interests over employee welfare. In a pointed social media post, Vembu took a veiled dig at the Chennai-based company, referring to its move as a demonstration of “naked greed.”
Sridhar Vembu, the founder and CEO of Zoho, has publicly condemned Freshworks for its recent decision to lay off 660 employees, accusing the company of prioritizing shareholder interests over employee welfare. In a pointed social media post, Vembu took a veiled dig at the Chennai-based company, referring to its move as a demonstration of “naked greed.”
Vembu’s comments come in the wake of Freshworks’ announcement on November 7, 2024, that it would reduce its workforce by 13 percent, or around 660 people. This decision followed a $400 million stock buyback and a surge in the company’s share price, which rose by 28 percent. Freshworks, which has over 5,000 employees, explained that the layoffs were part of a strategy to increase operational efficiency. However, the timing and the scale of the cuts have sparked controversy.
In his post, Vembu did not name Freshworks directly but criticized the company’s actions sharply. “A company that has $1 billion in cash, which is about 1.5 times its annual revenue, and is still growing at a decent 20 percent rate, making a cash profit, laying off 12-13 percent of its workforce should not expect any loyalty from its employees ever,” Vembu wrote. He emphasized that such moves should be viewed as more than just cost-cutting measures, likening them to “naked greed.”
Vembu also questioned the company’s leadership, asking whether it lacked the vision and imagination to invest its $400 million buyback fund into new business ventures, where the affected employees could have been redeployed. He accused Freshworks of failing to demonstrate empathy and vision for its workers.
“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,” Vembu added, expressing disbelief that Freshworks, with a solid cash reserve, had opted to take such drastic action.
The controversial layoffs at Freshworks have been attributed to the company’s efforts to streamline operations and improve efficiency. However, the move has raised concerns about the ethical implications of prioritizing shareholder returns over employee job security.
Dennis Woodside, the CEO of Freshworks, stated that the company is making these difficult decisions to improve long-term productivity and efficiency, despite its robust financial position. Freshworks, which has already conducted multiple rounds of layoffs since 2024, continues to adjust its workforce amid ongoing efforts to scale its business.
Interestingly, the relationship between Zoho and Freshworks has been strained for years. Freshworks founder Girish Mathrubootham, who previously worked at Zoho, started his own company in 2010. Since 2020, the companies have been involved in legal disputes, with Zoho accusing Freshworks of stealing confidential information—a claim that has only fueled the rivalry between the two tech giants.
As the fallout from the layoffs continues to unfold, many are left questioning the ethics of such decisions in an era where businesses are often expected to balance profit-making with employee welfare.
Sources By Agencies
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