Freshworks to cut 11% jobs as AI reshapes software industry
- On Tuesday, May 5, 2026, San Mateo-based Freshworks announced it would lay off 11% of its workforce, or about 500 employees, as the company navigates industrywide disruptions caused by rapid advances in AI-driven tools.
- San Francisco startup Labs announced last week that CEO Michael Heinrich is cutting staff, explaining that AI-driven agents are now highly effective at performing human roles.
- Freshworks CEO Dennis Woodside plans to reinvest restructuring savings, estimated at about $8 million, into the Employee Experience business, which includes IT service management software Freshservice.
- Shares of the software provider dropped more than 8 per cent in extended trading as investors weighed competitive threats from AI-driven tools developed by rivals like Anthropic, Salesforce, and ServiceNow.
- Layoffs data reported that employees have lost their jobs this year, illustrating how companies are racing to automate work and reshape products around AI-driven tools while attempting to offset steep operational costs.
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Freshworks Cuts 11% Of Workforce As CEO Says 'Over Half Of Our Code Is Written By AI' - Freshworks (NASDA
Freshworks Inc. (NASDAQ:FRSH) has cut hundreds of jobs as it accelerates its shift toward artificial intelligence (AI), with leadership saying automation is now deeply embedded in how the company builds and runs its business. AI-Driven Restructuring Sparks 500 Job Cuts On Tuesday, Freshworks said it will lay off about 11% of its workforce, or roughly 500 employees, as it restructures operations in response to rapid AI adoption across the tech in…
‘Over half of our code is written by AI’: Freshworks CEO as SaaS firm announces 500 job cuts
Freshworks was one of the first Indian SaaS companies to be listed on the Nasdaq stock exchange. The restructuring is expected to cost the firm one-time charges of about $8 million.
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Business TimesFreshworks to cut 11% jobs as AI reshapes software industry
May 5 : Freshworks said on Tuesday it would cut 11 per cent of its workforce, or about 500 jobs, as the business-software company navigates the industrywide disruptions caused by the rapid advances in artificial intelligence.Shares of the company, which makes software that manages customer service and tech su
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