Zoho founder Sridhar Vembu slams Freshworks’ 13% layoffs amid 22% revenue growth: ‘This corporate greed is unacceptable’

Zoho founder Sridhar Vembu voiced strong criticism after Freshworks announced layoffs of 660 employees, warning that “naked greed” from corporate America is seeping into India. “This behaviour, sadly, has become all too common in the US corporate world, and we are importing it in India,” Vembu wrote on social media.

Vembu’s comments come amid recent layoffs at Freshworks, a Chennai-based competitor, which reported a 22 per cent revenue increase but cut 13 per cent of its workforce. Though not directly naming Freshworks, Vembu slammed companies laying off workers while maintaining strong profits and cash reserves. “A company that has $1 billion cash… and is actually still growing at a decent 20% rate… laying off 12-13% of its workforce should not expect any loyalty from its employees ever,” he said.

Freshworks also announced a $400 million stock buyback, a decision Vembu criticized as short-sighted. “Don’t you have the vision to invest $400 million in another line of business where you can deploy those people you hired?” he asked, adding, “Are you so lacking in curiosity, vision, and empathy?”

The layoffs follow Freshworks report of a 22 per cent rise in third-quarter revenue to $186.6 million. The company cited the need to “streamline operations” as roles are cut across the U.S., India, and other regions. Vembu argued that companies with ample cash should pause hiring or pursue new projects rather than lay off employees.

Vembu highlights Zoho's commitment to employees

Vembu highlighted Zoho’s commitment to its employees and customers, saying, “We put our customers and employees first. Shareholders should come last.” He noted that Zoho’s private status helps it avoid shareholder pressure, describing the harm “shareholder first” priorities inflict on employee morale. “This private equity and Wall Street-led ‘shareholder first’ world does not work and won’t even work out well for shareholders,” he added.

Referencing the Friedman Doctrine’s focus on profit maximization, Vembu criticized a “use and throw” mentality in the workplace, stating, “People don’t like to be treated that way.” He warned that prioritizing short-term gains at the cost of employee loyalty and well-being is “socially unsustainable,” fostering cynicism and deep divisions.