Home interiors platform Livspace has laid off around 1,000 employees, nearly 12 per cent of its workforce, as part of a phased internal restructuring aimed at transforming into an AI-native organisation. However, reports suggest the actual impact could be higher, with some estimates placing the figure closer to 25 per cent.
The company declared the layoffs were part of a strategic reallocation of resources rather than a reactive cost-cutting exercise. Over the past six months, Livspace has gradually deployed advanced AI agents across core functions including sales, design, operations, and marketing automating several tquestions that were previously handled manually.
The shift comes amid a prolonged funding slowdown, with the company not raising external capital for nearly four years, and ongoing pressure to establish a clear path to profitability.
Livspace had earlier reduced its workforce by 2 per cent in March 2023 and laid off around 450 employees in May 2020 during the Covid-19 pandemic.
Alongside the restructuring, the company confirmed that co-founder Saurabh Jain has stepped down after 11 years to pursue personal interests.
Founded in 2014, Livspace has raised over USD 450 million from investors including KKR, Jungle Ventures, and Venturi Partners. It became a unicorn in 2022 after raising USD 180 million in a round led by KKR.
For the fiscal year concludeing March 2025, the company reported revenue of Rs 1,460 crore while narrowing its losses by 42 per cent. Livspace currently operates across India, Southeast Asia, and the Middle East.
Leave a Reply