Freshworks Inc. (NASDAQ:FRSH) has cut hundreds of jobs as it accelerates its shift toward artificial intelligence (AI), with leadership saying automation is now deeply embedded in how the company builds and runs its business.
AI-Driven Restructuring Sparks 500 Job Cuts
On Tuesday, Freshworks said it will lay off about 11% of its workforce, or roughly 500 employees, as it restructures operations in response to rapid AI adoption across the tech industry, reported Reuters.
The company, which provides customer service and IT support software, said the cuts will span global teams and are aimed at reducing management layers and automating routine work.
CEO Dennis Woodside told Reuters the restructuring reflects how AI is already changing internal operations.
“Over half of our code is written by AI,” Woodside said, adding that automation has significantly reduced “rote work that technology can take care of.”
The company also pointed to similar moves across the sector, noting peers such as Atlassian Corp. (NASDAQ:TEAM) have announced layoffs as software firms race to integrate AI while controlling costs.
AI Drives Tech Layoffs
Earlier, Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg said the company’s rising AI infrastructure costs had forced difficult trade-offs, leading to planned layoffs.
He explained that increasing investment in AI systems had reduced funding available for staff, with Meta expected to cut about 10% of its workforce.
Amazon.com Inc. (NASDAQ:AMZN) also eliminated thousands of jobs, cutting more than 14,000 roles across multiple divisions as it expanded AI adoption.
Engineering positions were among the most affected, with internal filings showing they accounted for a large share of job reductions in key U.S. states.
Perplexity AI CEO Aravind Srinivas took a more optimistic view, saying AI-driven layoffs could push workers to leave unfulfilling roles and start new businesses.
While acknowledging job displacement, he said AI tools created new opportunities for skill-building and entrepreneurship.
Billionaire investor Mark Cuban also said AI would transform jobs but emphasized that workers who adapt quickly could stay competitive, comparing the shift to the early personal computer era.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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