‘This Is Naked Greed, Nothing Less’: Zoho’s Founder Sridhar Vembu Slams Corporate Greed, Questions Layoffs & & Stock Buybacks At Financially Stable Firms|Image Source: Wikipedia (Representative).
Sridhar Vembu, the creator of Zoho, in a current article shared on the social networks system X, previously Twitter shared a message that seemed a sharp review, revealed his displeasure of firms priotritise investor passions at the cost of staff member protection, particularly when solvent.
Although Vembu did not discuss Freshworks by name, his remarks came a day after the firm introduced discharges of 660 workers and a $400 million supply buyback.
Taking to the system X, Vembu published “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.”
“I can understand the unfortunate reality of layoffs when a business is struggling or declining and making a loss. This is not that situation, this is naked greed, nothing less,” he included.
Vembu Asks Key Questions regarding Leadership
Vembu wondered about whether management had the insight to buy various other locations of business as opposed to choosing discharges. “Don’t 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’t want anymore?” Vembu asked. He challenged the company’s empathy and strategic thinking, asking, “Are you so lacking in curiosity, vision, and imagination?”
“This 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,” he composed even more.
“This is why we choose to remain private. We put our customers and employees first. Shareholders should come last,” he added
Netizens Reaction
Vembu’s post garnered a conversation among netizens.
Many expressed their support for his views, with one user commenting, “Laying people off to make more money when you already have plenty should be criticized.”
Another user shared, “You require to establish an atmosphere of trust fund with your workers that obtains appeared these activities.”
Screengrab of the remarks|
