Bengaluru: In a major shakeup, home decor and interior furnishing startup Livspace has sacked over 1,000 employees, which accounts for about 12 percent of its total workforce.
The shift is aimed at lowering costs and replacing people with AI, according to a Moneycontrol report. One of its co-founders, Saurabh Jain, who was promoted from the role of Chief Business Officer (CBO) only in 2022, has also quit the company.
The decision has impacted employees across departments like design, sales, operations, marketing and more. Bengaluru-based Livspace had around 7,000-8,000 staff prior to the cost-cutting exercise and has gradually reduced headcount by at least around 1,000 people.
Notably, the shift comes at a time when countries and several CEOs from around the world are in India discussing the impact of AI on jobs at the India AI Impact Summit 2026 in New Delhi.
“At Livspace, we’ve always been a technology-first company. As we see at the next phase of our growth, we are fundamentally reorganising our internal operations to become an AI-native agentic organisation,” a spokesperson stated as quoted by Moneycontrol.
Justifying the shift, they stated, “To be clear, this isn’t a reactive cost-cut. It’s a strategic reallocation of resources,” the spokesperson added.
Published on: Friday, February 20, 2026, 09:26 PM IST
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