Whatfix Cuts 60-80 Jobs Amid AI Adoption Wave

Digital Adoption Platform (DAP) provider Whatfix, backed by major investors like Warburg Pincus and SoftBank, has initiated a significant restructuring, resulting in the layoff of approximately 6% of its global workforce.

The cuts, estimated to impact between 60 to 80 employees, primarily target the company’s non-engineering functions, specifically its sales and marketing (Go-To-Market or GTM) teams.

The move marks the first known mass layoff exercise for the Bengaluru and San Jose-headquartered firm since its founding in 2013 by Khadim Batti and Vara Kumar.

This decision reflects a broader trend sweeping across the global Software-as-a-Service (SaaS) sector, where companies are optimizing headcounts in response to shifting market demands and the rapidly increasing integration of Artificial Intelligence (AI).

The AI-Driven Restructuring at Whatfix

According to a company spokesperson, the layoffs are part of a “strategic realignment to sharpen its focus on long-term, sustainable, and efficient growth in a rapidly changing market.”

Crucially, the spokesperson confirmed that roughly 4% of the cuts were specifically within the GTM teams.

This move is intended “to better align our go-to-market with the strong traction we are seeing in our AI-first product lines.”

Sources suggest that the accelerated adoption of AI within enterprise operations has begun to slow growth in traditional parts of the company’s business over the past few quarters, necessitating a shift in resource allocation.

Whatfix has been aggressively investing in AI capabilities since acquiring Airim in 2019, pouring millions into data scientists, engineering upskilling, and dedicated AI product development, positioning itself for the future of digital adoption.

Financial Context and Market Position

The workforce reduction comes despite Whatfix demonstrating healthy top-line growth in its last disclosed financials.

For the fiscal year 2024, the company reported a robust 49% growth in operating revenue, reaching ₹424.58 crore, up from ₹284.74 crore in the previous fiscal year.

Simultaneously, the firm succeeded in narrowing its net losses by 20%, bringing them down to ₹262.63 crore.

The company secured a substantial $125 million in a Series E funding round in September 2024, led by Warburg Pincus, which valued the company at nearly $900 million.

A significant portion of this funding, $58 million, was dedicated to a secondary sale and employee stock option plan (ESOP) buyback, reflecting investor confidence prior to this recent organizational shift.

Whatfix’s primary market remains the United States, which contributed over 70% of its total revenue.

Wider Industry Trend

Whatfix’s decision is not an isolated incident but rather indicative of a sweeping pattern across the enterprise software landscape in 2025.

Numerous major tech firms and Indian startups, including Zopper and Gupshup, have engaged in similar workforce reductions this year, often citing the need for efficiency and a pivot toward AI-as-a-Service (AIaaS) models.

Whatfix confirmed that it is handling the transition with “care and empathy,” providing support to the impacted employees.

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