Home interior and renovation platform Livspace has laid off about 1,000 employees, 25% of its 4,000-strong workforce, as the unicorn transitions to an AI-native, agentic organization, according to people aware of the development.
Separately, co-founder Saurabh Jain has exited the company, the people added.
Livspace elevated Saurabh Jain in 2022, then its chief business officer, as co-founder and chief executive for India operations, as part of its broader top-level reshuffle that also included appointing Lalit Mittal as chief business officer for the India business.
A Livspace spokesperson said Jain is leaving after more than a decade at the company. “After 11 remarkable years, our co-founder, Saurabh Jain, has decided to move on to pursue his personal interests. Saurabh has been a cornerstone of Livspace since day one and was absolutely instrumental in scaling the company to its current heights,” the spokesperson said.
Although people cited above peg the cuts at about 25% of Livspace’s workforce, or around 1,000 employees, the company did not disclose the number. Instead, the spokesperson said the changes were part of a “measured, phased transition involving approximately 12% of our workforce”.
AI transition
The spokesperson said the move followed an internal reorganization as the company looks at its next phase of growth. “We are fundamentally reorganizing our internal operations to become an AI-native agentic organization,” the spokesperson said.
The company added that it has “integrated advanced AI agents and automation” across sales, operations, design, and marketing, and that “tasks that were previously manual are now handled by intelligent systems”, indicating that the transition affected roles and workstreams across these functions.
Calling it “not a reactive cost-cut” but “a strategic reallocation of resources”, the spokesperson said Livspace is “investing heavily in AI and technology” to improve customer outcomes and is “choosing to lean into the future of work rather than clinging to legacy operational models”.
The spokesperson also said the realignment was rolled out over the past six months as the company tested and deployed AI agents, and that the phased approach was meant to ensure service levels were maintained as manual roles were phased out.
Livspace sells end-to-end home interior design and renovation services, including modular interiors and allied execution work, and was founded by Ramakant Sharma and Anuj Srivastava in 2014.
The company has raised $527 million in equity funding across 13 rounds, according to market intelligence platform Tracxn. Its investors include KKR, TPG, Ingka Investments, Bessemer Venture Partners, Jungle Ventures, and Helion Venture Partners, among others. Tracxn lists the company’s largest disclosed funding round as a $184 million Series F on 7 February 2022 led by KKR, and pegs its post-money valuation at $957 million as of 23 June 2022.
Livspace operates in a crowded home interiors and furniture market, where funded players such as HomeLane and Pepperfry compete for customers seeking design-and-execution services and furniture purchases.
Gurugram-based digital media platform Entrackr reported on 14 Februarythat omnichannel furniture retailer Pepperfry is looking to raise about $18 million in a down round, highlighting pressure on valuations in the home and furniture segment.
In the home interiors category, HomeLane has also raised capital from investors such as Accel, Peak XV Partners, and Pidilite, among others.
AI-led layoffs
Layoffs across tech and startups have persisted since early 2020 amid a push for cost control, and have increasingly been framed as restructuring tied to automation and the adoption of generative AI tools, with companies pruning roles even as they spend more on AI-led delivery.
In 2025, large technology firms also cut jobs as they reorganized around AI-led products and automation. Reuters reported on 28 October that Amazon was targeting as many as 30,000 corporate job cuts, its biggest reduction since late 2022. Microsoft, too, confirmed a fresh round of layoffs in July 2025 of about 9,000 employees, or nearly 4% of its workforce, amid a broader restructuring.
In India’s startup ecosystem, layoffs continued through 2025 across sectors such as electric mobility, online gaming, and logistics. Data from Layoffs.fyi showed more than 4,200 job cuts across 42 Indian tech startups between January and October 2025, including Ola Electric (1,000), Games24x7 (580), Head Digital Works (500), VerSe Innovation (350), Porter (over 350), Otipy (about 300) and Zepto (up to 300), among others.
