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.
Indian IT has long relied on internal silos rather than unified execution across teams and systems. Now AI threatens to break that model because building, deploying, and improving models requires tighter data sharing and cross-functional coordination. The result is a new kind of competitive risk: firms that can’t align internally may fall behind faster-moving rivals.
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