1,000 workers are let go by Livspace, and cofounder Saurabh Jain leaves

Home decor platform Livspace has laid off around 1,000 employees — approximately 12% of its workforce — over the past six months as part of an internal reorganisation driven by artificial intelligence adoption. The move coincides with the exit of cofounder Saurabh Jain after 11 years at the company.

In a statement, the Bengaluru-based startup described the workforce reduction as a measured and phased transition aligned with the integration of AI agents and automation across key business functions, including sales, design, operations and marketing.

“This realignment has taken place gradually over the last six months as we meticulously tested and deployed our AI agents across various functions,” the company said. “This deliberate pace allowed us to ensure that as manual roles were phased out, our automated systems were fully capable of maintaining the high standard of service our customers expect.”

The Ikea-backed firm added that Jain will pursue personal interests, noting that his departure comes alongside the company’s broader operational transformation.

Livspace said its AI initiatives have significantly improved efficiency across departments. In design, AI-powered mood boarding and 3D rendering tools have reduced the time from concept to visualisation by 60%. In sales, AI-driven voice agents, lead-scoring systems and automated customer nurturing tools now manage top-of-funnel activities, enabling human sales teams to focus on high-intent consultations.

Operations, including supply chain management and project tracking, are now overseen by predictive AI systems, reducing manual supervision of delivery timelines. In marketing, the company has adopted a “creative factory” model that automates advertisement creation and has increased campaign output tenfold.

The company emphasised that the restructuring is not reactive cost-cutting but a strategic shift. “To be clear, this isn’t reactive cost-cutting. It’s a strategic reallocation of resources,” the statement said, adding that Livspace is investing heavily in AI and technology to deliver improved customer outcomes with greater precision.

Founded in 2015 by Ramakant Sharma and Anuj Srivastava, Livspace connects homeowners with designers and vendors for end-to-end home interior solutions. The startup became a unicorn in 2022 after raising $180 million at a valuation exceeding $1 billion. Last year, Srivastava transitioned to chairman of the board, while Sharma, previously chief operating officer, took over as chief executive officer.

For the fiscal year ended March 2025, the company reported revenue of $231 million and a net loss of $39 million.