In another news of large layoffs driven by a company’s aim to go ‘AI Native’, Bengaluru-based Livspace, a home decor startup that also worked in the interior furnishing space has let go of 1000 employees, representing about 12 percent of its total workforce, to become an ‘AI-native agentic organisation’.
According to a report by Moneycontrol, the decision has impacted workers across different verticals and functions like design, sales, operations, marketing and more.
Reason for large-scale layoffs
According to a spokesperson who spoke with Moneycontrol, the layoffs are a part of the larger internal re-structuring operations being undertaken by the company.
The company plans to use the cost saved from ‘streamlining’ the company’s workforce to develop the firm’s AI based worksystems, the report said.
Commenting on the nature of the layoffs, the company spokesperson told Moneycontrol that these latest round of layoffs were not a reactive cost-cut but rather a strategic re-allocation exercise.
“At Livspace, we’ve always been a technology-first company. As we look at the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization,” a company spokesperson told moneycontrol.
Livspace on optimising operations with AI
According to the company spokesperson, Livspace is optimising its work systems by integrating advanced AI agents and automation flows in its work cycle.
“What this means in practice is that we’ve integrated advanced AI agents and automation across our core functions — Sales, Ops, Design, and Marketing,” a company spokesperson told moneycontrol.
This is at least the second round of layoffs at the company. In 2023, it had cut nearly 100 jobs in a move to improve its profit profile. Livspace has previously also let go of over 400 employees in 2020.
According to a report by moneycontrol, Livspace has frequently employed similar measures to reduce its costs and maintain profit on the top line. Livspace recorded a 23 percent year-on-year growth in sales in FY2025 projecting a total revenue of Rs 1,460 crore.
Co-founder quits
Coinciding with Livspace’s realignment of its workforce, the company’s co-founder Saurabh Jain has also signed off from his role at the organization after working there for 11 years.
Saurabh had joined Livspace in 2015. He had joined when his company DezignUp was acquired by Livspace in 2015.
“In tandem with our technological evolution, we are also seeing a natural transition in our leadership. After 11 remarkable years, our co-founder, Saurabh Jain, has decided to move on to pursue his personal interests,” a spokesperson for Livspace told moneycontrol.
“Saurabh has been a cornerstone of Livspace since day one and was absolutely instrumental in scaling the company to its current heights,” the spokesperson added.
Livspace is one of the largest companies in India’s home-decor space. Founded in 2014, the company has raised over $500 million since its inception and was last valued at over $1 billion. The company was started by Ramakant Sharma, Anuj Srivastava and Shagufta Anurag.