Freshworks Cuts Around 11% of Global Workforce Amid AI-Driven Restructuring

Freshworks is laying off around 11 per cent of its global workforce as part of a new restructuring initiative linked to operational changes and increased adoption of artificial intelligence across the company.
According to multiple reports, the workforce reduction is expected to affect nearly 660 employees worldwide. The move comes even as the software company continues to report revenue growth.
For the first quarter of FY2026, Freshworks reported revenue of $228.6 million, representing a 16 per cent year-on-year increase. The company also expects to incur restructuring-related expenses between $7 million and $9 million.
Artificial intelligence is reportedly playing a central role in the company’s evolving operating model. Freshworks has stated that AI systems now generate more than half of its code output, reflecting the growing integration of automation into software engineering and product development workflows.
The company is also restructuring parts of its sales and management operations as it adapts to changing business requirements and AI-enabled processes.
This marks the second reported round of layoffs at Freshworks this year. The restructuring comes despite recent reports linking the company to a potential $200 million funding round involving investment firms Bond Capital and Insight Partners.
The developments reflect a broader transformation underway across the software industry, where companies are increasingly relying on AI to automate coding, testing, and operational tasks. As AI-generated code adoption rises, organisations are reassessing workforce requirements and shifting hiring priorities towards specialised areas such as AI operations, infrastructure engineering, and platform reliability.
At the same time, the growing use of AI-assisted software development has raised industry concerns related to code quality, software maintenance, testing reliability, and long-term technical debt management as automation scales across engineering teams.
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