Livspace, the home interiors and renovation platform, has laid off around 1,000 employees, accounting for nearly 12 percent of its workforce, as part of a phased internal restructuring focused on becoming an AI-native organisation. However, industry reports indicate that the actual impact could be significantly higher, with some estimates suggesting that up to 25 percent of employees may have been affected.
The company described the layoffs as a strategic reallocation of resources rather than a reactive cost-cutting exercise. Over the past six months, Livspace has steadily deployed advanced AI agents across key business functions such as sales, design, operations, and marketing. As a result, automation has replaced several tasks that teams earlier handled manually, allowing the company to redesign workflows and reduce dependency on large operational teams.
Meanwhile, the restructuring comes at a time when Livspace continues to navigate a prolonged funding slowdown. The company has not raised external capital for nearly four years and has faced sustained pressure to demonstrate a clear and sustainable path to profitability. Consequently, the shift toward automation reflects a broader effort to improve efficiency while controlling long-term costs.
Previously, Livspace trimmed its workforce by about 2 percent in March 2023. Earlier, during the peak of the Covid-19 pandemic in May 2020, the company had laid off nearly 450 employees as demand across the housing and interiors sector slowed sharply.
Alongside the restructuring, Livspace also confirmed a major leadership change. Co-founder Saurabh Jain has stepped down after spending 11 years at the company, choosing to pursue personal interests beyond the business.
Founded in 2014, Livspace has raised more than USD 450 million from prominent investors, including KKR, Jungle Ventures, and Venturi Partners. In 2022, the company achieved unicorn status after raising USD 180 million in a funding round led by KKR.
For the financial year ending March 2025, Livspace reported revenue of Rs 1,460 crore while simultaneously reducing its losses by 42 percent. At present, the company continues to operate across India, Southeast Asia, and the Middle East, even as it reshapes its organisation to align with an increasingly AI-driven business model.
