Zoho’s Sridhar Vembu Criticizes Freshworks Layoffs and Buyback: ‘No Loyalty Expected from Employees’

This comes a day after Freshworks’ CEO announced layoff of 660 employees and $400 million in share buyback.

Sridhar Vembu, the CEO and co-founder of Zoho, recently expressed strong criticism of Freshworks’ business decisions, particularly regarding layoffs and stock buybacks, suggesting that such moves undermine employee loyalty. Vembu’s comments, which were made in an online discussion, highlight the growing tensions and differing philosophies among leaders of major tech companies in India and the global business landscape.

Also read this article

In an apparent criticism of Freshworks, Zoho founder Sridhar Vembu said a company that had over a billion dollars in the bank and yet chose to prioritise shareholders by undertaking layoffs and announcing a buyback, should not expect its workforce to remain loyal.

“A company that has $1 billion cash, which is about 1.5 times its annual revenue, and is actually still growing at a decent 20 percent rate and making a cash profit, laying off 12-13 percent of its workforce should not expect any loyalty from its employees ever. And, to add insult to injury, when it can afford $400 million in a stock buyback,” Vembu wrote on X on November 8.

“I can understand the unfortunate reality of layoffs when a business is struggling or declining and making a loss. This is not that situation, this is naked greed, nothing less,” he added.

Also read this article

While he did not name Freshworks in his X post, the implication was clear, considering his strident criticism came just a day after Freshworks earnings and shock layoffs of 660 people, even as it announced a $400-million buyback, moves that sent its shares soaring 28 percent in the US markets on Thursday.

Vembu also indirectly asked a few questions to the Nasdaq listed major. “Don’t you have the vision and imagination to invest $400 million in another line of business where you can deploy those people you hired but you don’t want anymore? Are there no such opportunities in tech? Are you so lacking in curiosity, vision and imagination? Are you so lacking in empathy?”

Not all Sikhs in Canada are Khalistan supporters: Justin Trudeau