Home interiors platform Livspace has joined the shift that artificial intelligence is reshaping in workplaces beyond the technology sector. The Bengaluru-based startup, backed by global investment firm KKR, has laid off around 1,000 employees as part of a broader transition toward an AI-driven operational model.
According to a report by Moneycontrol, the layoffs account for nearly 12 per cent of the company’s total workforce.
Why Livspace Laid Off Around Employees
With companies worldwide accelerating AI adoption to boost efficiency and productivity, Livspace appears to be following a similar trajectory. A company spokesperson told Moneycontrol, “as we look at the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization.”
The spokesperson also clarified that the restructuring should not be viewed purely as cost reduction:
“To be clear, this isn’t a reactive cost-cut. It’s a strategic reallocation of resources.”
However, the report, citing people familiar with the matter, noted that layoffs were partly intended to reduce expenses and increase reliance on AI in place of certain human roles.
Livspace Co-Founder Saurabh Jain Steps Down as CEO
Amid the restructuring, co-founder Saurabh Jain has stepped down from his role as CEO. In a LinkedIn post, Jain indicated he would soon begin a new venture but did not directly link his exit to the layoffs.
“After more than a decade building Livspace, I’m stepping into my next chapter with pride in what we’ve created and clarity about what lies ahead,” Jain wrote.
Reflecting on the company’s origins, he added, “Home interiors in India could be built differently.”
He described the journey that followed as one marked by conviction and resilience:
“What followed was a journey of conviction, resilience, hard calls, and extraordinary people. From early uncertainty to building a category-defining company, this experience has shaped me in ways I’ll carry forever.”
Who is Livspace Co-Founder Saurabh Jain?
Jain expressed appreciation for colleagues and stakeholders who contributed to the company’s growth.
“I’m deeply grateful to the teams, partners, board members, and homeowners who trusted us and built this alongside me. What stands today is a reflection of collective grit and shared ambition. I will always cheer for Livspace and remain deeply optimistic about its future. As we say, I will always remain a proud Spacer, forever! Ramakant Sharma and Anuj S.”
He also hinted at his next plans, “As I take a brief pause to reflect, I’m also working on something new, a space I’ve been thinking about deeply. I’ll share more soon. Sometimes you have to close a meaningful chapter, not because the story ends, but because a bigger one is ready to begin.”
Jain, a B.Tech graduate from the Indian Institute of Technology, Delhi, joined the e-commerce-focused interior design company in 2015 and announced his departure after nearly 11 years with the organisation. The company is headquartered in Bengaluru.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
