As part of its attempts to streamline operations, Freshworks, a large software-as-a-service (SaaS) company listed on the Nasdaq, announced plans to decrease its headcount by 13%, affecting roughly 660 individuals worldwide. At the moment, the company employs around 5,000 people.

Additionally, Freshworks said that its board of directors has authorized a program to repurchase up to $400 million worth of outstanding Class A common stock.

According to a stock exchange filing, the company projects that this will lead to a 13% headcount reduction and charges of between $11 million and $13 million in the fourth quarter of 2024, mostly in the form of cash outlays for employee benefits, separation-related payments, and associated expenses.

By the conclusion of the fiscal year that ends on December 31, 2024, the corporation anticipates having finished its restructuring plan.

Since last year, the organization has experienced multiple rounds of layoffs. ET revealed on March 16, 2023, that Freshworks implemented layoffs in June after implementing workforce cuts to improve organizational and operational efficiencies. 36% of workers go to the gig economy for alternative work amid corporate layoffs.

Following the resignation of founder Girish Mathrubootham, the company also selected Dennis Woodside as its new CEO on May 1. At Freshworks, Mathrubootham assumed the position of executive chairman.

From $153.6 million in the third quarter of 2023 to $186.6 million in Q3 2024, the company's total revenue increased by 22%.

For the fourth quarter, the company anticipates revenue of between $187.8 million and $190.8 million. For the entire year, it anticipates a 20% gain in revenue, with estimates ranging from $713 million to $716.6 million.

In Q3, 22,359 customers contributed more than $5,000 in ARR, representing a 14% increase from the previous year. Its Q3 2023 GAAP loss from operations was $38.9 million, down from $38.7 million. However, its Q3 non-GAAP operating income increased from $17.4 million to $24.0 million.

Its stock price increased 5.23% to close at $13.09.

In 2010, Freshworks was established in Chennai, specializing in providing customer relationship management (CRM) software to small and medium-sized enterprises (SMB). The software as a service (SaaS) company, which has its headquarters in Chennai and San Mateo, California, services over 68,000 clients, including American Express, Bridgestone, Databricks, Fila, Nucor, and Sony.