In a scathing critique, Zoho founder Sridhar Vembu has condemned Freshworks for its recent layoffs and stock buyback plan, calling it “naked greed.”
Sridhar, who did not explicitly name Freshworks in his post on X (formerly Twitter), criticized the company for laying off 660 employees despite having $1 billion in cash reserves and a 20% growth rate.
ZOHO CEO’s Criticism of Layoffs and Buyback Plan
Sridhar expressed his frustration over the layoffs, stating that a company with such substantial cash reserves should not expect loyalty from its employees.
He pointed out that Freshworks, which announced a $400 million stock buyback, could have invested in new business ventures to redeploy the affected employees instead of prioritizing shareholder returns.
Sridhar questioned the leadership’s vision and empathy, asking if they lacked the imagination to invest in new opportunities.
Highlighting Zoho’s commitment to its employees and customers, Sridhar emphasized that the company remains private to avoid shareholder pressure.
He stated, “We put our customers and employees first. Shareholders should come last,” underscoring Zoho’s philosophy of prioritizing employee well-being over short-term financial gains.
Freshworks Response and Industry Trends
Freshworks, which has faced multiple rounds of layoffs and management restructuring since 2024, has not yet responded to Vembu’s comments.
The company’s CEO, Dennis Woodside, cited the need to streamline operations and improve efficiency as reasons for the layoffs.
Sridhar’s criticism reflects a broader trend in the corporate world, where employee morale is often affected by prioritizing shareholder interests over workforce stability.
Sridhar’s remarks have sparked a debate on corporate ethics and the treatment of employees in the tech industry.
His call for companies to invest in their workforce and foster long-term loyalty highlights the importance of balancing financial performance with employee satisfaction.
As the industry continues to evolve, the approach taken by companies like Zoho may set a precedent for more humane and sustainable business practices.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
