Whatfix Cuts 6% of Workforce as It Rebuilds Around AI-First Product Strategy

Whatfix, the enterprise software company based in Bengaluru and co-founded by Khadim Batti and Vara Kumar, has laid off about 60 to 80 employees, equal to roughly 6% of its workforce, in what is the firm’s first major restructuring since it was established. The largest reductions were in the sales and marketing teams, which handle the company’s go-to-market functions.

According to company statements cited in reports, the cuts are part of a “strategic realignment” aimed at efficient growth and adjusting to changes in customer demand. A spokesperson said the move is intended to align the organisation with areas of higher traction within its product offerings and to ensure long-term sustainable growth. The company also affirmed that it will offer severance support and transition assistance to affected employees.

Prior to this action, Whatfix had not publicly announced any large-scale layoffs, making this the first known instance of headcount reduction in its history. The company has raised significant funding, including a 125 million dollar Series E round led by Warburg Pincus with participation from SoftBank Vision Fund 2, and has pursued employee stock option plan liquidity programs in recent years.

Shifting to an AI-First Product Roadmap

Whatfix’s core product is a digital adoption platform that enterprises use to help employees and customers navigate complex software applications. The platform offers in-app guidance, interactive training tools, and analytics that track and improve software usage and compliance.

The company began expanding into artificial intelligence in 2019 through the acquisition of AI startup Airim. Following that acquisition, Whatfix developed and introduced its patented ScreenSense technology to improve user navigation and recommendations. This technology and other intelligent enhancements have been integrated into the product over the past few years.

Reports note that Whatfix has also invested in teams focused on engineering and data science to build out its AI-enabled capabilities. Company representatives have said demand within customer organisations for features such as automated content generation, workflow guidance and in-app assistance has influenced how digital adoption platforms are evaluated and implemented. The restructuring comes as Whatfix reallocates resources from traditional sales and marketing roles toward supporting these product areas and customer needs that emphasise self-service, automation and integrated guidance.

Why AI Resets Are Shaping SaaS Workforces

Whatfix’s move is similar to steps taken by other technology companies this year. In 2025, several enterprise software and SaaS firms have announced job cuts or organisational changes as they adjust operating models and reassign resources. Reports highlight actions by companies such as Zopper and Gupshup, both of which reduced staff in sales, support, and other non-engineering functions as their product and delivery models evolved.

Industry tracking data shows that more than 200,000 tech jobs have been affected globally this year through layoffs and restructuring. Multiple large technology employers and Indian startups have announced workforce changes as customer expectations and product adoption patterns continue to shift.

In the SaaS segment, companies are reassessing how roles related to onboarding, content development, and customer interactions are balanced against functions such as product engineering and core platform development. As more tools automate routine tasks, some organisations have reduced headcount in traditional sales and support teams while maintaining or increasing technical staff.

Whatfix’s step is similar to what many other SaaS firms are doing. The company is prioritising product lines that enable automated guidance and customer self-service. This has resulted in fewer roles in conventional go-to-market teams even as adoption of its platform continues.