Those firms, Vambu, say, do not expect loyalty from their employees – a statement that he made as a clear jib in his company Zoho’s competitive Freshworks.
“A company that has a cash of $ 1 billion, which is about 1.5 times in its annual revenue, and is still increasing at a decent 20% rate and earning cash profit, 12-13 of its workforce. Closing the % should not expect any loyalty to its employees anytime. And to add an insult to injury, when it can afford $ 400 million in stock bayback, “Wambu wrote in a post on microblogging platform X, without naming any specific company.
| Some of the largest layoffs of 2024 | |
| Intel | 15000 |
| Tesla | 14000 |
| Cisco | 9850 |
| Toshiba | 4000 |
| SAP | 8000 |
| Getir | 3300 |
| Paytm | 3000 |
| Zerxa | 3000 |
| Microsoft | 2900 |
| Paypal | 2500 |
| UKG | 2200 |
| farfetch | 2000 |
| Unity | 1800 |
| Wayfair | 1650 |
| Infineon | 1400 |
| Flipkart | 1100 |
| IBM | 1000 |
| Tikokok | 1000 |
| In fact | 1000 |
| 1000 | |
| Source: Sorting | |
“I can understand the unfortunate reality of the trimmed when a business is struggling or decreasing and doing damage. This is not a situation, this is naked greed, nothing less, ”he said.
– Sridhar Vambu (@Svembu) November 7, 2024
Zoho’s founder’s comment came a day later when Freshworks reported its results for the quarter of July to September 2024, with its total revenue was $ 186.6 million, 22% compared to the total revenue of $ 153.6 million in the same quarter of 2023. Increase, and 22% adjustment to continuous currency. The firm also increased its entire year 2024 revenue, non-GAAP income from operation and non-GAAP per share guidance.
However, Nasdaq-Listed Software-e-A-Service (SAAS) chief announces that he is reducing his workforce by 13%, which affects around 660 employees globally, which to streamline operations It is as part of its efforts. Currently the firm has a workforce of over 5,000 employees. Sorting will affect freshworks employees at the US, India and other places.
Freshworks also announced that its board of directors had approved the $ 400 million share buyback program, but did not expand the timeline for this exercise.
After these developments, without the name of freshworks (even the details of the post matches with those in the freshworks results), Chennai -based Vembo raised an important question for the leadership of the firm.
“Do you have a vision and imagination to invest $ 400 million in another line of business where you can deploy people you have hired but you don’t want anymore? Are there no such opportunities in technology? Are you lacking in curiosity, vision and imagination? Are you lacking sympathy? “He wrote
The founder of Zoho claimed that this behavior, sadness, has become very common in the American corporate world and is being imported into India. This has occurred only as a large -scale employee converted in the US and is also being imported here.
Vambu said that this is why he has decided to stay private for his company. “We put our customers and employees first. The shareholders should finally come. ,
When one of the X users asked Wambu whether it is okay to allow 10% of the workforce to optimize the operation, they explained that if a company has a lot of people, but still still If growing and there is a lot of cash, then it is not to hire for the bus. For some time, the company will allow the additional people to be re -prepared that they hired.
“Second, if you have a lot of cash (this is the case I mentioned), then it would be a good way to deploy people to implement our imagination to start new products and services. In the circumstances I mentioned, the trimming completely destroys morale, ”he replied.
In response to another user, he said that it was not on all ideals in the US 50 years ago. American companies took care of their employees and became the world beater. However, it does not work the “shareholder first” world led by private equity and Wall Street and it will not work well for shareholders, he said.
Wambu also said that Freedman Siddhant – “The only duty of a company is to maximize the profit and shareholder value” – does not work. This is the result in the “use and throw” model for employees. “People do not like to behave in this way.”
“Then why has it worked clearly in America? “Top soil erosion and new top soil import” – use your people and throw away and then import new ones to replace them. We only saw the extreme political partition that makes the model. ,
(Tagstotranslate) sridhar vembu jibe at freshworks
