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Bengaluru, India: Home-interiors platform Livspace has laid off around 1,000 employees as part of a major restructuring aimed at accelerating artificial intelligence adoption across its business operations. The move comes alongside the resignation of co-founder Saurabh Jain, marking one of the company’s most significant leadership and strategy shifts since its inception.
According to people familiar with the matter, the workforce reduction primarily affects roles in operations, customer support, design coordination and middle management — areas the company believes can increasingly be handled through AI-driven automation and workflow tools. The layoffs are expected to reduce costs while allowing the firm to invest more aggressively in technology, product development and data infrastructure.
AI-First Strategy
Livspace is reportedly integrating generative AI into multiple parts of its platform, including automated design suggestions, instant quotation generation, supply chain optimization and customer query handling. The company aims to shorten project timelines and improve margins in a segment traditionally dependent on manual coordination between designers, vendors and homeowners.
Executives indicated the shift is necessary to remain competitive in a rapidly digitizing home-renovation market, where customers increasingly expect faster turnaround times, transparent pricing and real-time visualization tools.
Co-Founder Exit
Co-founder Saurabh Jain’s departure coincides with the restructuring, though sources say it is not directly linked to the layoffs. Jain had been involved in scaling operations and partnerships during Livspace’s expansion into multiple international markets. The company has not yet announced his successor or whether the role will be redistributed among existing leadership.
Industry Trend
The development reflects a broader trend in the startup ecosystem where companies are prioritizing profitability and automation after years of aggressive hiring. Several technology and consumer-internet firms have recently turned to AI to streamline operations, reduce overhead and improve efficiency as funding conditions tighten globally.
Livspace, backed by prominent venture investors, is expected to continue hiring selectively in areas such as machine learning, data science and product engineering even as traditional roles shrink.
The company has stated affected employees will receive severance benefits and support in finding new opportunities, while reiterating that AI-driven transformation is central to its next phase of growth.
