Warburg Pincus-Backed Whatfix Lays Off 6% Employees After AI Adoption Hits Growth

SaaS (Software-as-a-service) company Whatfix has laid off nearly 60-80 employees from its sales and marketing teams, according to The Economic Times report. This comes after the company’s increased the adoption of artificial intelligence (AI) slowed down its growth over the past few quarters.

Whatfix spokesperson, as quoted by ET, confirmed the layoff development, saying the SaaS platform has undertaken a strategic realignment to sharpen its focus on long-term, sustainable, and efficient growth in a rapidly changing market.

“As part of this shift, approximately 6% of our current headcount was impacted, including around 4% in our GTM (go-to market) teams, to better align our go-to-market with the strong traction we are seeing in our AI-first product lines,” the spokesperson said, quoted by the news publication.

“These decisions are never easy, and we remain committed to handling the transition with care and empathy for our colleagues. We will continue to support impacted team members and ensure uninterrupted excellence for our customers,” he added.

Whatfix, founded in 2014, provides a digital adoption suite that includes interactive training environments, simulation-based learning tools, and no-code analytics. Its solutions help organisations boost user productivity, maintain process compliance, and enhance the overall experience across both internal and customer-facing applications.

Layoffs Continue Across SaaS

With the latest layoffs news, the Warburg Pincus-backed firm becomes part of a growing list of enterprise software companies that have trimmed their workforce in 2025.

Other notable cuts, include Elevation Capital-backed Zopper, which laid off about 100 employees, and conversational messaging start-up Gupshup, which let go of 100–150 staffers as part of a broader restructuring that ultimately affected nearly 300 staffers.

The wave of job cuts extends beyond SaaS players. Amazon reduced roughly 1,000 roles in India as part of its global layoff of 14,000 employees. Late last year, publicly listed Freshworks also slashed around 13% of its worldwide workforce, impacting 660 people, including an unspecified number in India.

Nearly 450 employees at Builder.ai have reportedly lost their jobs as the company collapses, with no clarity on whether severance was provided. CEO Sachin Dev Duggal Ratia acknowledged the situation during a town hall, saying the workforce had effectively been left without roles.

The Microsoft-backed start-up is now facing insolvency in the US amid serious allegations of misrepresenting its technology. Builder.ai, previously known as Engineer.ai, claimed to offer an AI-driven no-code software platform, but is now accused of relying heavily on human workers instead of automated systems.

The company is also being investigated for allegedly inflating revenue figures to attract investors.