Bengaluru-based Livspace lays off 1,000 employees in massive AI shakeup, co-founder resigns
Bengaluru-based home decor firm Livspace has laid off 1,000 employees as the startup focuses on a shift towards reducing costs and using more AI. Livspace co-founder Saurabh Jain has also left.
Artificial Intelligence (AI) is shaking up the job market, and not just for IT companies. Now, Bengaluru-based home decor startup, Livspace, has laid off 1,000 employees as it prepares to move towards an AI-powered approach. Livspace is backed by global investment firm KKR.
According to Moneycontrol, this layoff is 12 percent of Livspace’s total workforce. The Bengaluru-based startup is reportedly undergoing a major restructuring in an effort to reduce costs and focus more on AI. The move coincides with discussions at the India AI Impact Summit 2026 in Delhi, where global leaders are debating the employment impacts of artificial intelligence.
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Amid this organizational change, co-founder Saurabh Jain has also left Livspace after a tenure of 11 years. Jain, who joined the company in 2015 following the acquisition of his startup DezignUp and was promoted to chief business officer in 2022.
Livspace joins major companies in AI-driven layoffs
At a time when almost every big company is pushing to adopt more AI in the workplace, Livspace is also eyeing greater productivity with AI. “As we look to the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization,” a spokesperson told Moneycontrol.
However, Livspace says this is not a decision aimed at saving costs. A company spokesperson said, “To be clear, this is not a reactive cost cutting. This is a strategic reallocation of resources.”
The last few months have been very difficult for the job market. From Amazon and Microsoft to TCS and Accenture, every major company has announced mass layoffs involving more than 1 lakh employees.
Livspace is automating some key tasks
Livspace has implemented automation in key departments, many tasks that were previously performed manually are now handled by intelligent systems. “We have integrated advanced AI agents and automation into our core functions – sales, ops, design and marketing. In many areas, tasks that were previously manual are now handled by intelligent systems,” the company said.
This is not the first time that Livspace has reduced its employee count. In 2023, the company laid off approximately 100 employees, eliminating more than 400 roles in 2020 as part of ongoing efforts to improve profitability and operational efficiency. According to reports, Livspace’s revenue grew 23 per cent to Rs 1,460 crore in FY25, while losses narrowed to Rs 242 crore compared to Rs 416 crore last year.
