Livspace trims workforce by 1,000 in AI transition, co-founder exits

Home decor and renovation platform Livspace has laid off nearly 1,000 employees, accounting for 25% of its 4,000-person workforce, as the unicorn transitions to an AI-driven, intermediary organization, according to people familiar with the development.

Additionally, co-founder Saurabh Jain has left the company, sources added.

Livspace appointed Saurabh Jain as co-founder and chief executive officer of India operations in 2022; This is as part of a wider senior reshuffle that also includes the appointment of Lalit Mittal as chief operating officer for the India business.

Jain is leaving after more than a decade with the company, a Livspace spokesman said. “After 11 remarkable years, our co-founder, Saurabh Jain, has decided to pursue his personal interests. Saurabh has been the cornerstone of Livspace since day one and has been absolutely instrumental in helping the company reach its current heights,” the spokesperson said.

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The people cited above estimated the cuts would be about 25% of Livspace’s workforce, or about 1,000 employees, though the company did not disclose that figure. Instead, the spokesperson said the changes were part of a “measured, phased transition covering approximately 12% of our workforce.”

AI transition

The move follows an internal restructuring as the company looks at its next phase of growth, the spokesman said. “We are fundamentally reorganizing our internal operations to become an intermediary organization where artificial intelligence is native,” the spokesperson said.

The company added that it has integrated “advanced AI agents and automation” across sales, operations, design and marketing, and that “previously manual tasks are now performed by intelligent systems,” noting that the transition has impacted roles and workflows across these functions.

Calling this “not a reactive cost-cutting” but a “strategic reallocation of resources,” the spokesperson said Livspace is “investing heavily in artificial intelligence and technology” to improve customer outcomes and “choosing to lean into the future of business rather than sticking to legacy operational models.”

The spokesperson also said that the realignment has been carried out over the last six months as the company has been testing and deploying AI agents, and that the phased approach aims to ensure service levels are maintained while manual roles are phased out.

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Livspace sells end-to-end home interior design and renovation services, including modular interiors and related application work, and was founded in 2014 by Ramakant Sharma and Anuj Srivastava.

The company raised $527 million in equity funding across 13 rounds, according to market intelligence platform Tracxn. Its investors include KKR, TPG, Ingka Investments, Bessemer Venture Partners, Jungle Ventures and Helion Venture Partners. Tracxn lists the company’s largest announced financing round as a $184 million Series F led by KKR on February 7, 2022, pegging its post-money valuation at $957 million as of June 23, 2022.

Livspace operates in a crowded home interiors and furniture market where funded players such as HomeLane and Pepperfry compete for customers seeking design and installation services and furniture purchases.

Gurugram-based digital media platform Entrackr’s report on February 14 The fact that omnichannel furniture retailer Pepperfry is considering raising around $18 million in the downturn highlights the pressure on valuations in the home and furniture segment.

In the home interiors category, HomeLane has also raised capital from investors such as Accel, Peak XV Partners, and Pidilite, among others.

AI-led layoffs

layoffs This trend between tech and start-ups has continued since early 2020 amid a push for cost control, increasingly framed as restructuring tied to automation and the adoption of productive AI tools, with companies pruning their roles even as they spend more on AI-led delivery.

In 2025, major technology companies will also make layoffs as they reorganize around artificial intelligence-led products and automation. Reuters On October 28, it was reported that Amazon was targeting up to 30,000 corporate layoffs; this was the largest decrease since the end of 2022. Microsoftalso confirmed a new layoff in July 2025 of around 9,000 employees, or around 4% of the workforce, as part of a broader restructuring.

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In India’s startup ecosystem, layoffs in sectors such as electric mobility, online gaming and logistics have continued until 2025. Data from Layoffs.fyi showed over 4,200 layoffs across 42 Indian tech startups between January and October 2025, including Ola Electric (1,000), Games24x7 (580), Head Digital Works (500), VerSe Innovation (350), Porter (over 350), Otipy (around 300) and Zepto (up to 300).