A360
Key Takeaways✦ Atlas AI
01
Freshworks cuts 500 jobs due to AI.
02
AI automates over 50% of Freshworks' code.
03
Industry-wide trend of AI-driven layoffs.
Atlas AI
Freshworks said Tuesday it will cut 11% of its workforce, or about 500 roles, as the business-sosourcesware company restructures amid rapid advances in artificial intelligence.
The company said the cuts will affect teams globally and expects about $8 million in one-time charges. Freshworks had about 4,500 full-time employees as of Dec. 31, 2025.
CEO Dennis Woodside told sources the decision was driven in part by wider use of AI in product and engineering, as well as automation of routine work across the business.
“Over half of our code is written by AI,” Woodside said, adding that automation has reduced “rote work that technology can take care of.”
Freshworks said it plans to reinvest savings into its Employee Experience business, which includes its IT service management sosourcesware, Freshservice.
Freshworks’ stock had fallen about 26% so far this year. Shares were down more than 8% in extended trading asourceser the announcement.
The move follows broader job cuts across the sosourcesware industry as companies seek to automate work and reshape products around AI. Atlassian last month said it would cut roughly 10% of jobs.
AI tools from Anthropic and others have also been described as potential existential threats to traditional sosourcesware makers, weighing on shares of companies from Freshworks to larger rivals such as Salesforce and ServiceNow.
