N8n server getting overloaded

Should be normally more than enough.

Not sure if I understand correctly. Are you calling a webhook for every request you get or do you have batch task? Or both?

If you receive a lot of requests, especially a lot of requests in parallel, it is probably best if you tell n8n to run all workflow executions in the main process. That is not just way faster it saves a lot of resources.

You can do that by setting:

export EXECUTIONS_PROCESS=main

Here the documentation: