Zoho founder Sridhar Vembu slams Freshworks for cutting 13% of staff despite 22% revenue growth: ‘This kind of corporate greed is unacceptable’

After Freshworks announced it was laying off 660 employees, Zoho founder Sridhar Vembu issued strong criticism, warning that “naked greed” in corporate America is seeping into India. “Sadly, this type of behavior has become all too common in corporate America and we are importing it to India,” Vembu wrote on social media.

Vembu’s comments come amid recent layoffs at Chennai-based rival Freshworks, which reported 22% revenue growth but cut 13% of its workforce. While Vembu didn’t name Freshworks directly, he slammed companies that are cutting jobs while maintaining strong profits and cash reserves. “A company with $1 billion in cash…that is actually still growing at 20%…that is laying off 12-13% of its workforce shouldn’t expect any employee loyalty,” he said.

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

The layoffs come after Freshworks reported third-quarter revenue growth of 22% to $186.6 million. The company said it needed to “simplify operations” as roles were cut in the United States, India and other regions. Vembu believes companies with plenty of cash should pause hiring or launch new projects rather than lay off workers.

Vembu highlights Zoho’s commitment to employees

Vembu emphasized Zoho’s commitment to employees and customers, saying: “We put customers and employees first. Shareholders should come last.” He noted that Zoho’s private status helps avoid shareholder pressure, describing how The damage “shareholder first” priorities do to employee morale. “This ‘shareholder first’ world dominated by private equity and Wall Street doesn’t work and doesn’t even deliver benefits to shareholders,” he added.

Referring to the Friedmanian focus on profit maximization, Vembu criticized the “use and throw away” mentality in the workplace, saying: “People don’t like to be treated that way.” He warned that at the expense of employee loyalty Prioritizing short-term gains at the expense of health and well-being is “socially unsustainable” and fosters cynicism and deep divisions.