Freshworks lays off 660 — about 13 percent of its global workforce — despite strong earnings, profits

The layoffs will cost the company somewhere between $11 million and $13 million for “cash expenditures for severance payments, employee benefits, and related costs” according to a US Securities and Exchange Commission (SEC) form 8-K (which must be filed to reveal major events that shareholders should be aware of) that the company filed on Wednesday.

In a letter to employees on Wednesday, Woodside wrote that the layoffs were needed because “we need to simplify the way we work and operate more efficiently.”

“We began by combining teams focused on customer experience (CX) products, including support, sales and marketing, and reallocating people and investments to prioritize our fastest growing employee experience (EX) business. These decisions were made thoughtfully and carefully to set a strong foundation for our future,” Woodside wrote. “To add more focus on our EX, AI, and CX priorities, we are realigning our global workforce, putting us on a path to have a bigger impact for our customers. We’re making these changes while our business is profitable and our AI-powered products are providing increasing customer value. We believe this will help us accelerate our growth and simplify the way we work, so that we’re running Freshworks in a way that’s efficient and scalable.”