Freshworks to end Freshteam HR product, stop renewals from March 2026

Freshworks will discontinue Freshteam, its HR and employee management software, and stop renewing subscriptions from March 7, 2026, as the company sharpens its focus on a more unified employee experience platform.

The Nasdaq-listed software maker said the decision would have no material business impact, according to a response shared with Moneycontrol. Freshworks added that there would be no impact on internal teams, noting that employees working on Freshteam were redeployed to other business units in 2022.

In an email to customers reviewed by Moneycontrol, Freshworks said it would halt annual, half-yearly and quarterly renewals for Freshteam starting March 7, 2026. Customers will continue to have access to the product until the end of their current subscription term.

To ease the transition, the company will allow one-year renewals for contracts expiring before March 7, 2026, extending usage of Freshteam through April 2027. The move is intended to give customers sufficient time to migrate to alternative platforms.

Freshworks said Freshteam was moved under the Freshservice for Business Teams group in 2022, when the company stopped selling it as a standalone product but continued to support renewals for existing customers. The decision to fully sunset the product was taken to consolidate resources for non-IT teams within Freshservice for Business Teams, the company said.

Freshteam offered applicant tracking, onboarding, employee information management, time-off tracking and basic HR workflows, primarily targeting startups and small-to-mid-sized businesses. It positioned itself as an entry-level HR system, competing with both domestic HR technology startups and global providers focused on smaller enterprises.

The consolidation reflects a broader strategic shift at Freshworks. In 2022, the company began reassessing its HR software portfolio to avoid overlapping solutions built by different teams for the same market. As part of that effort, Freshteam’s product and engineering teams were folded into the Freshservice business.

Freshworks said its Freshservice for Business Teams product, which sits within its enterprise service management portfolio, has doubled its annual recurring revenue over the past year, as reported in its third-quarter FY25 earnings.

The move comes as software-as-a-service companies face growing pressure to streamline product portfolios, simplify go-to-market strategies and concentrate investment on core platforms, particularly as customers demand deeper integrations and AI-driven capabilities.