Nasdaq-listed SaaS firm Freshworks posted a $4.8 million net loss in Q1 2026, reversing a $191.4 million profit from Q4 2025. Revenue rose 16% year-on-year to $228.6 million, but the company expects continued growth alongside belt-tightening. Freshworks will cut about 11% of its workforce, roughly 500 employees, citing AI adoption and automation, with $8 million in one-time restructuring charges.
Freshworks has announced an 11% workforce reduction, cutting roughly 500 jobs, blaming industry disruption from rapid advances in artificial intelligence. The company says AI is changing how products are developed and is increasingly automating routine tasks, reducing demand for certain roles. The move highlights how software firms are restructuring to adapt to AI-driven workflows.
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