New Delhi. After Freshworks announced the layoff of 660 employees, Zoho founder Sridhar Vembu has strongly criticized the move. Vembu says that the effect of 'American corporate greed' is being seen in India as well. Freshworks, a leading Chennai-based software company, recently decided to lay off 13% of its employees despite a 22% increase in its revenue.

Vembu called this move unnecessary, especially when the company has a billion dollars in cash and a growth rate of 20%. He said on social media that companies that are making profits and have good cash reserves should understand their responsibility towards the employees.

Vembu's statement
He said, “If a company has $1 billion in cash, which is about 1.5 times its annual earnings, and is still growing at a good rate of 20% and making cash profits, yet lays off 12-13% of its employees, then it can never expect loyalty from its employees. What is even more surprising is that the company is doing a stock buyback of $400 million.”

He further writes, “I can understand that if a company is in crisis or loss, there may be a compulsion to layoff, but this is clearly a sham, nothing more. Here is an important question, does the company leadership not have enough vision and imagination to invest $400 million in some other new business, where it can use the employees it no longer wants to keep? Are there no such opportunities in the technology sector? Does the leadership lack such curiosity, vision and imagination? Is there not enough empathy? It is regrettable that this behavior has now become common in the corporate world of America and we are importing it to India. The result is massive employee frustration in America, and we are bringing this to India too.”

Zoho's policy is different
Vembu also stressed on Zoho's policy, which gives priority to customers and employees. "We give priority to customers and employees before our shareholders," he said. Vembu criticized the 'shareholder first' policy and called it detrimental to employees. Vembu believes that adopting a 'use and throw' attitude towards employees in the pursuit of more profits is not only unsustainable but also creates divisions in society.