Freshworks to discontinue HR software Freshteam, halts renewals from March 2026

Freshworks

• Freshworks to end Freshteam HR software, halting renewals from March 7, 2026
• Freshteam users can renew contracts for one year if expiring before 3/7/2026.
• Freshteam teams were redeployed in 2022; no impact on Freshworks' internal staff

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Nasdaq-listed software firm Freshworks has informed customers that it will discontinue Freshteam, its HR and employee management software, as it consolidates workflows and sharpens its focus on building a more unified employee experience platform.

The company in a response to Moneycontrol's queries said the decision will have no material business impact, adding that there is no impact on internal teams, as employees working on Freshteam were redeployed into other business units back in 2022. Freshworks does not disclose customer or revenue numbers by individual product line.

"Freshteam was moved under the Freshservice for Business Teams group in 2022, when it stopped selling the product as a standalone offering but continued supporting renewals for existing customers.  Freshworks made the current decision to fully sunset Freshteam to allow us to consolidate resources building for non-IT teams into Freshservice for Business Teams," the firm said.

In an email sent to customers, Freshworks said it will stop renewing Freshteam subscriptions starting March 7, 2026. Annual, half-yearly, and quarterly renewals will no longer be offered after this date, though customers will continue to have access to the product until the end of their current subscription term.

To provide customers with sufficient time to migrate, the company said it will allow one-year renewals for contracts expiring before March 7, 2026, extending Freshteam usage through April 2027.

The company also said that Freshservice for Business Teams, its enterprise service management (ESM) product, has doubled its annual recurring revenue over the past year, as reported in its Q3 FY25 earnings.

Freshteam primarily offered applicant tracking, onboarding, employee information management, time-off tracking, and basic HR workflows, catering largely to startups and small-to-mid-sized businesses. Over the years, it positioned itself as an entry-level HR system, competing with both domestic HR tech startups and global SMB-focused providers.

In 2022, Freshworks began reassessing its HR software strategy to avoid multiple teams building overlapping solutions for the same market. As part of this effort, Freshteam’s engineering and product teams were redeployed into the Freshservice business group.

The move comes at a time when SaaS companies are under increasing pressure to streamline product portfolios, simplify go-to-market strategies, and embed AI-driven capabilities across core platforms.