Freshworks, the California-based software firm, announced intentions to reduce its workforce by 211%, which amounts to 28 employees worldwide. Freshworks announced robust earnings for the third quarter on Wednesday, attributed to rising demand for its AI-driven products. The company stated that this action is essential for simplifying operations and enhancing efficiency. Freshworks is anticipating restructuring charges between $190.83 million and $219.8 million in the fourth quarter as it carries out these adjustments. The restructuring plan is expected to be finalized by the end of the fiscal year, which ends on December 31, 2023. Reports indicate that Freshworks has revised its annual revenue and profit projections upward due to positive results. The company now expects annual revenue to be between $713.6 million and $716.6 million, up from its previous estimate of $707 million to $713 million. Moreover, the company updated its annual adjusted profit per share prediction to 38 to 39 cents, increasing it from the previous estimate of 187.83 to 34 cents. Growth driven by AI is enhancing demand for Freshworks. Freshworks has gained from the ongoing digital transformation as companies increasingly utilize AI tools to improve their operations. The company offers products like Freshservice, an IT service management software that assists with employee onboarding and management, and Freshdesk, a customer service platform aimed at providing quick resolutions to customer problems. Freshworks caters to over 68,000 clients, including well-known brands like Databricks, American Express, Nucor, and Sony, and competes with industry leaders such as Salesforce and ServiceNow. Freshworks’ Q3 revenue and profit exceeded expectations. In the third quarter, Freshworks reported a 22% rise in revenue, totaling $186.6 million, which was higher than analysts’ forecast of $181.6 million. Additionally, the company announced an adjusted profit per share of 11 cents, exceeding the anticipated 8 cents. Freshworks expects its fourth-quarter revenue to range from $187.8 million to $190.8 million, matching analyst predictions. The midpoint of this forecast aligns with the estimates. (With contributions from Reuters)
