{"id":170750,"date":"2024-11-08T11:45:51","date_gmt":"2024-11-08T11:45:51","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/08\/zohos-sridhar-vembu-calls-out-naked-greed-of-company-with-1-billion-cash-for-fresh-layoffs-should-not-expect-any-loyalty-times-of-india\/"},"modified":"2024-11-08T11:45:52","modified_gmt":"2024-11-08T11:45:52","slug":"zohos-sridhar-vembu-calls-out-naked-greed-of-company-with-1-billion-cash-for-fresh-layoffs-should-not-expect-any-loyalty-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/08\/zohos-sridhar-vembu-calls-out-naked-greed-of-company-with-1-billion-cash-for-fresh-layoffs-should-not-expect-any-loyalty-times-of-india\/","title":{"rendered":"Zoho\u2019s Sridhar Vembu calls out ‘naked greed’ of company with ‘$1 billion cash’ for fresh layoffs: ‘Should not expect any loyalty’ – Times of India"},"content":{"rendered":"
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In a scathing critique aimed at companies prioritizing shareholders over employees, Zoho founder Sridhar Vembu condemned Freshworks for its recent workforce cuts and stock buyback plan. Though he did not explicitly name Freshworks, his remarks on X (formerly Twitter) closely followed Freshworks’ latest financial moves\u2014layoffs of 660 employees and a $400 million stock buyback, which sent its shares soaring 28% in the US market.
Vembu voiced disapproval of companies maintaining high cash reserves yet opting for layoffs, a move he called \u201cnaked greed.\u201d Freshworks, boasting $1 billion in cash and a 20% growth rate, recently laid off 12-13% of its workforce. Vembu\u2019s response was unequivocal:
“A company that has $1 billion cash, which is about 1.5 times its annual revenue, and is actually still growing at a decent 20% rate and making a cash profit, laying off 12-13% of its workforce should not expect any loyalty from its employees ever. And to add insult to injury, when it can afford $400 million in a stock buyback.”
He challenged Freshworks\u2019 leadership, questioning their willingness to invest in new avenues that could sustain displaced workers rather than prioritize shareholder returns. \u201cDon\u2019t you have the vision and imagination to invest $400 million in another line of business where you can deploy those people you hired but don\u2019t want anymore?\u201d he asked, hinting that Freshworks\u2019 leadership might be \u201clacking in empathy.\u201d<\/p>\n

Vembu\u2019s frustration highlighted a trend he sees infiltrating India\u2019s corporate culture from the US, where he believes similar practices have eroded employee morale. \u201cThis behavior, sadly, has become all too common in the US corporate world, and we are importing it in India. It has only resulted in large-scale employee cynicism in the US, and we are importing that too.\u201d
Emphasizing Zoho\u2019s commitment to employees over shareholders, Vembu explained why Zoho remains private. \u201cWe put our customers and employees first. Shareholders should come last,\u201d he concluded.
Freshworks is yet to respond to Vembu\u2019s comments.<\/div>\n<\/div>\n