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Sridhar Vembu slams Freshworks layoffs; says cash-rich company can't expect employee loyalty if it prioritises shareholder buyback

YourStory · 6m

Zoho Corporation founder, Sridhar Vembu, criticized Freshworks for laying off employees while prioritizing shareholder buybacks. In a post, Vembu argued that a cash-rich company with $1 billion in cash and positive growth should not expect loyalty from employees when they are letting go of staff members and spending $400 million on stock buybacks. Although Vembu didn't explicitly mention Freshworks, his comments came shortly after the company announced a reduction in its workforce by around 13% and approved a stock repurchase program. He also expressed concern about US corporations prioritizing shareholder value over employee well-being.