Livspace Cuts 1,000 Jobs in Major AI Pivot

Indian home interiors platform Livspace has laid off around 1,000 employees—approximately 12% of its workforce—as part of a phased internal reorganisation aimed at becoming an AI-native organisation. However, reports suggest the impact could be as high as 25%, according to Moneycontrol.

The company described the move not as reactive cost-cutting but as a “strategic reallocation of resources,” driven by deeper integration of artificial intelligence across core functions such as sales, design, operations, and marketing. Livspace stated that it has deployed advanced AI agents capable of automating several previously manual tasks.

According to the firm, the transition unfolded gradually over the past six months, with AI systems tested and integrated across departments before roles were phased out. Management claims that service quality was maintained during this shift.

This is not Livspace’s first round of layoffs. The company reduced 2% of its workforce in March 2023 and cut around 450 jobs in May 2020 during the Covid-19 lockdowns, reflecting recurring operational recalibrations.

The workforce reduction coincides with a leadership change. Co-founder Saurabh Jain has stepped away after 11 years to pursue personal interests, marking a significant transition in the company’s leadership structure.

Founded in 2014, Livspace has raised over $450 million from investors including KKR, Jungle Ventures, and Venturi Partners. It achieved unicorn status in 2022 after raising $180 million in a round led by KKR.

For the fiscal year ending March 2025, Livspace reported revenue of ₹1,460 crore and narrowed its losses by 42%. While the company frames the layoffs as part of its AI transformation, prolonged funding constraints and the absence of a clear profitability roadmap appear to have significantly influenced the restructuring.