BENGALURU, India (Diya TV) — Livspace has laid off at least 1,000 employees as part of a major restructuring drive focused on artificial intelligence. The job cuts account for roughly 12% to 25% of its total workforce, according to people familiar with the matter. The move also comes as co-founder Saurabh Jain exits the company after more than a decade. The layoffs mark one of the largest workforce reductions in India’s home decor and interior design startup sector this year. Livspace, backed by global investment firm KKR, says it is reorganizing operations to become an “AI-native agentic organization.”
The Bengaluru-based home decor startup had around 7,000 to 8,000 employees before the restructuring. The company has gradually reduced its headcount by about 1,000 roles across design, sales, operations, and marketing functions. A company spokesperson confirmed the development to Moneycontrol. The spokesperson said Livspace is investing heavily in AI to improve efficiency and productivity.
“At Livspace, we’ve always been a technology-first company. As we look at the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization,” the spokesperson said.
The company said the layoffs are not reactive cost-cutting. Instead, it described the move as a strategic reallocation of resources. Livspace has integrated advanced AI systems and automation tools into its core business functions. Many tasks that teams once handled manually now rely on intelligent software. The spokesperson added that AI tools have boosted productivity across departments. However, the workforce reduction reflects a clear shift toward automation.
The timing of the layoffs stands out. Leaders and executives recently gathered in India to discuss the impact of artificial intelligence at the India AI Impact Summit 2026 in New Delhi. Many global CEOs argued that AI would transform jobs rather than eliminate them. Livspace’s restructuring tells a different story. The company has replaced certain manual processes with automated systems. The shift signals how fast-growing startups may use AI to cut costs and streamline operations.
The layoffs also mark at least the second major workforce reduction at Livspace. In 2023, the company cut nearly 100 jobs to improve profitability. It also laid off more than 400 employees in 2020 during a broader cost-control effort.
Livspace has reported stronger financial results over the past year. In fiscal year 2025, the company increased sales to 1,460 crore rupees, up 23% from 1,185 crore rupees in fiscal year 2024. The company also reduced its losses significantly. Losses shrank from 416 crore rupees in FY24 to 242 crore rupees in FY25. The cost-cutting measures and operational changes have helped improve margins. Livspace continues to focus on sustainable growth in India’s competitive home interiors market.
Alongside the layoffs, co-founder Saurabh Jain has resigned from the company. Jain joined Livspace in 2015 after the company acquired his startup, DezignUp. He later rose to chief business officer and played a key role in scaling operations.
“In tandem with our technological evolution, we are also seeing a natural transition in our leadership,” the spokesperson said. “After 11 remarkable years, our co-founder, Saurabh Jain, has decided to move on to pursue his personal interests.”
The company credited Jain for helping build Livspace into India’s largest home decor and interior furnishing platform. Livspace was founded in 2014 by Ramakant Sharma, Anuj Srivastava, and Shagufta Anurag. The startup has raised more than $500 million in funding. Investors have valued the company at over $1 billion, making it one of India’s leading home interiors unicorns.
Livspace competes with other home decor and interior design startups, including HomeLane, which has backing from Peak XV Partners. The sector has grown rapidly in recent years as more homeowners seek customized interior solutions. Despite strong demand, companies in the space face pressure to improve profitability. Rising costs and tight funding conditions have pushed startups to streamline operations.
