Livspace, a prominent interior design startup, has recently undergone a significant internal restructuring, resulting in the layoff of approximately 1,000 employees, constituting nearly 12% of its workforce. The company has cited its ambition to transition into an AI-native organization as the driving force behind this move.
Despite Livspace’s official announcement of a 12% employee impact, a report by Moneycontrol suggests that the figure could be as high as 25%, indicating the magnitude of this organizational shift.
The company clarified that the recent layoffs were not merely a cost-cutting measure but a strategic reallocation of resources aimed at integrating advanced artificial intelligence and automation technologies across key functions such as sales, design, operations, and marketing.
Livspace highlighted the gradual implementation of AI systems over the past six months, leveraging AI agents to automate tasks previously handled manually. This transition was meticulously executed to maintain service quality even as certain roles were phased out.
In addition to the operational changes, Livspace also announced a leadership transition, with co-founder Saurabh Jain stepping down after an 11-year tenure to pursue personal interests.
Since its establishment in 2014, Livspace has secured over $450 million in funding, achieving unicorn status in 2022. The company’s fiscal performance for the year ending in March 2025 showcased revenues of Rs 1,460 crore, with a 42% reduction in losses.
Source: Entrackr : Latest Posts