The AI Takeover: Livspace Cuts 1,000 Jobs As Co-Founder Saurabh Jain Departs

The home interiors landscape in India is witnessing a seismic shift. Livspace, the KKR-backed unicorn that once redefined how we furnish our homes, has reportedly laid off approximately 1,000 employees—nearly 12% to 25% of its workforce—in a bold, some state controversial, shift toward becoming an “AI-native” organization.

This isn’t just another story of a startup tightening its belt. It is a signal of a new era where “Agentic AI” isn’t just a buzzword; it’s a replacement for the human touch.

A “Phased” Exit and a Leadership Void

The layoffs, which have been rolling out over the last six months, coincide with a major departure at the top. Saurabh Jain, co-founder and a cornerstone of Livspace’s growth for the past 11 years, has officially exited the company. Jain joined the firm in 2015 after his startup, DezignUp, was acquired, and his departure marks the conclude of an era for the brand’s original leadership team.

While the company frames Jain’s exit as a “natural transition” to pursue personal interests, the timing—amidst a massive workforce reduction—has raised eyebrows across the Bengaluru tech corridor.

From Human Designers to “AI Agents”

Livspace has been vocal about its reasoning: this is a strategic pivot, not a reactive cost-cut. The goal is to evolve into an AI-native agentic organization.

What does that view like in practice?

Design: AI-powered tools are now handling mood boarding and 3D rconcludeering, allegedly slashing concept-to-visualisation time by 60%.

Sales & Marketing: Automated lead-scoring systems and AI voice agents are now managing the “top of the funnel,” replacing human tele-callers and sales assistants.

Operations: Predictive AI systems are taking over supply chain management and project tracking to reduce manual oversight.

The Reality Check: Efficiency vs. Empathy

Despite the company’s upbeat framing, the shift highlights the harsh reality of the 2026 job market. As discussed at the recent India AI Impact Summit, the debate is no longer about if AI will replace jobs, but how quick.

Critics and former employees point out that while AI can rconcludeer a 3D room in seconds, it cannot yet replicate the nuanced empathy required when a homeowner is building the largegest emotional and financial investment of their life. Furthermore, with Livspace not having raised significant external funding in nearly four years, the “AI shift” also appears to be a necessary maneuver to narrow losses and find a path to profitability in a “funding winter.”

What’s Next for the Indusattempt?

Livspace’s shift is a gamble. If they successfully maintain service quality with a skeleton human crew, they set a new blueprint for the interior design indusattempt. If they fail, they risk becoming a cautionary tale of “over-automation.”

For the 1,000 professionals now viewing for work, the message is clear: the future of work isn’t coming—it’s already here, and it’s written in code.