RestructuringMay 5, 2026, 04:32 PM
Freshworks to cut 500 jobs (11% workforce); Q1 Revenue $228.6M
AI Summary
Freshworks announced a restructuring plan impacting approximately 500 employees, or 11% of its global workforce, to streamline operations and enhance AI leverage. The company expects to incur $7 million to $9 million in charges in Q2 2026 related to this plan. Concurrently, Freshworks reported strong first-quarter 2026 financial results, with revenue increasing 16% year-over-year to $228.6 million and non-GAAP income from operations reaching $41.0 million. The company also provided optimistic guidance for Q2 and full-year 2026, alongside landing its two largest deals in company history.
Key Highlights
- Freshworks to cut approximately 500 employees, 11% of global workforce.
- Expects $7M-$9M restructuring charge in Q2 2026.
- Q1 2026 Revenue rose 16% YoY to $228.6 million.
- Non-GAAP Operating Income was $41.0 million (17.9% margin).
- Non-GAAP Diluted EPS reached $0.11.
- Net cash provided by operating activities was $62.4 million.
- Landed two largest deals, including first $1M+ ARR deal.
- Forecasts Q2 2026 revenue of $232.0M-$235.0M.