Whatfix Lays Off 6% of Workforce as Part of Major Company Restructuring
Digital adoption platform Whatfix has reduced its workforce by around 6% in its first large restructuring exercise since the company was founded. The Bengaluru-headquartered SaaS firm, backed by global investors including SoftBank and Warburg Pincus, confirmed that the move is part of a broader shift in its business priorities as the market for enterprise software evolves.
Restructuring Focused on Sales and Marketing Teams
According to people aware of the development, most of the job cuts were carried out in sales and marketing functions, especially those linked to the company’s go-to-market operations. Over the past few quarters, Whatfix has reportedly seen slower growth in some of its traditional enterprise segments, prompting the company to rethink how it positions and sells its products.
The company is now directing more resources towards automation and AI-driven product lines, which have witnessed increasing demand across global markets. As part of this shift, roles that do not align with the revised growth strategy have been trimmed.
Employees impacted by the layoffs have been informed, and Whatfix is said to be offering support during the transition. However, the company has not disclosed the exact number of employees affected.
Why Whatfix Is Realigning Its Business
Industry analysts suggest that the restructuring comes at a time when many SaaS companies worldwide are revisiting their cost structures and product priorities. With enterprises tightening software spends and adopting AI-powered tools at a faster pace, firms specialising in digital adoption solutions are reshaping their business models to stay competitive.
Whatfix, which helps companies onboard and train users on software tools through interactive guides and analytics, is now working to enhance its AI-first features. The aim is to deliver more automation, deeper insights, and improved efficiency for enterprise clients, especially as digital transformation strategies mature.
Market trends indicate that businesses are now prioritising tools that reduce manual effort, shorten adoption time, and improve productivity. By strengthening its AI-driven offerings, Whatfix hopes to align itself with these evolving customer expectations.
Strong Funding Backing and Financial Growth
Whatfix remains one of India’s best-funded SaaS companies. In 2023, it raised $125 million in a round led by Warburg Pincus, with further participation from existing backers including SoftBank Vision Fund 2. The funding also enabled a significant ESOP buyback programme for employees.
Financially, the firm reported solid growth in FY24. Revenue increased sharply compared to the previous year, while losses reduced. A major portion of its income continues to come from the United States, where the company serves large enterprise clients across technology, healthcare, and financial services sectors.
What This Means for the Company and the Market
The layoffs indicate that Whatfix is preparing for a more focused, product-led growth phase. By prioritising AI-powered solutions and streamlining its commercial teams, the company is aligning itself with the direction in which the global SaaS ecosystem is moving.
For the industry, Whatfix’s restructuring mirrors a broader trend: even well-funded tech firms are taking a more cautious, efficiency-driven approach as market conditions change.
While the company continues to scale globally, the success of its new strategy will depend on how effectively it strengthens its AI roadmap and adapts to customer needs in a rapidly shifting enterprise software landscape.
Nitin Konde
Must have tools for startups - Recommended by StartupTalky
- Convert Visitors into Leads- SeizeLead
- Website Builder SquareSpace
- Manage your business Smoothly Google Business Suite
