Livspace Cuts 1,000 Jobs as It Pivots to an AI-Driven Future; Co-founder Saurabh Jain Steps Down

Artificial intelligence is rapidly transforming workplaces across industries — and now the home interiors sector is feeling its impact. Bengaluru-based home décor platform Livspace has laid off around 1,000 employees as part of a sweeping internal restructuring aimed at transitioning into an AI-driven organisation.

The layoffs account for roughly 12 per cent of the company’s workforce, according to reports. The move comes as Livspace intensifies its focus on automation and artificial intelligence to streamline operations and drive efficiency. The company, which is backed by global investment firm KKR, is positioning itself for what it describes as its “next phase of growth.”

A spokesperson told Moneycontrol, “As we look at the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization.”

While workforce reductions are often linked to financial pressures, Livspace has clarified that the decision is strategic rather than reactive. Addressing concerns, the company spokesperson said, "To be clear, this isn't a reactive cost-cut. It’s a strategic reallocation of resources.”

The restructuring coincides with wider conversations about artificial intelligence and employment. At the India AI Impact Summit 2026 in Delhi, global leaders and policymakers have been discussing how AI is reshaping traditional job roles across sectors.

The internal overhaul also marks the end of a significant chapter for the company’s leadership. Co-founder Saurabh Jain has exited the firm after more than a decade. Jain joined Livspace in 2015 following the acquisition of his startup DezignUp and later rose to the position of Chief Business Officer in 2022. His departure comes amid the broader transformation underway within the company.

Livspace has confirmed that automation has already been integrated into several key departments. The company explained, “We’ve integrated advanced AI agents and automation across our core functions — Sales, Ops, Design, and Marketing. In many areas, tasks that were previously manual are now handled by intelligent systems.”

This is not the first time Livspace has trimmed its workforce. In 2023, nearly 100 employees were let go. Earlier, in 2020, more than 400 roles were eliminated as the startup worked to improve profitability and operational efficiency during challenging market conditions.

Despite the job cuts, the company’s financial performance shows signs of improvement. Livspace’s revenue increased by 23 per cent to Rs 1,460 crore in FY25. At the same time, its losses narrowed significantly to Rs 242 crore, compared to Rs 416 crore in the previous year.

The broader tech ecosystem has witnessed similar shifts, with companies such as Amazon, Microsoft, TCS, and Accenture announcing layoffs in recent months as they accelerate AI adoption.

As businesses worldwide recalibrate their workforce strategies, Livspace’s transformation reflects a growing trend: companies are betting big on AI, even as it reshapes traditional roles and redefines the future of work.