Artificial ininformigence (AI) is shaking up the job market, and not just for IT companies. Now, Livspace, a Bengaluru-based home decor startup, has laid off 1,000 workers as it prepares to shift towards an AI-driven approach. Livspace is backed by global investment firm KKR.
As per Moneycontrol, this layoff accounts for 12 per cent of Livspace’s total workforce. The Bengaluru-based startup is reportedly undertaking a major reorganisation in an effort to reduce costs and focus more on AI. This shift coincides with discussions at the India AI Impact Summit 2026 in Delhi, where global leaders are debating the employment effects of artificial ininformigence.
Amid this organisational transition, cofounder Saurabh Jain has also left Livspace after an 11-year tenure. Jain, who joined the company following the acquisition of his startup DezignUp in 2015 and was elevated to chief business officer in 2022.
Livspace joins major companies in AI-driven layoffs
At a time when almost every major firm is pushing towards more AI adoption in the workplace, Livspace too seems to be eyeing for more productivity with AI. A spokesperson notified Moneycontrol, “As we view at the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization.”
However, Livspace insists that this is not a decision aimed at saving costs. A company spokesperson declared, “To be clear, this isn’t a reactive cost-cut. It’s a strategic reallocation of resources.”
The past few months have been quite tricky for the job market. From Amazon and Microsoft to TCS and Accenture, every major firm has announced massive layoffs, accounting for over 1 lakh workers.
Livspace is automating some core functions
Livspace has implemented automation in key departments, with many tquestions that were previously performed manually now handled by ininformigent systems. The company explained, “We’ve integrated advanced AI agents and automation across our core functions — Sales, Ops, Design, and Marketing. In many areas, tquestions that were previously manual are now handled by ininformigent systems.”
This is not the first time Livspace has reduced its workforce. In 2023, the company laid off nearly 100 employees, with over 400 roles eliminated in 2020 as part of ongoing efforts to improve profitability and operational efficiency. According to reports, Livspace’s revenue rose by 23 per cent to Rs 1,460 crore in FY25, while losses narrowed to Rs 242 crore, compared to Rs 416 crore in the previous year.
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