Livspace layoffs 1000 employees: A spokesperson for the Bengaluru-based startup stated that the reduction in the number of employees is a part of the transition process that the company is undergoing in order to implement AI agents and automation in the sales, design, operations, and marketing functions.
Co-founder Saurabh Jain has also parted ways with the company after spconcludeing 11 years with the firm, stated a report by Economic Times. Here’s what happened.
Livspace layoffs 1000 employees: Is AI the reason?
In a statement, a spokesperson for the Bengaluru-based company stated that the layoffs were part of a planned and phased transition process as the company launched to incorporate AI agents and automation in key areas such as sales, design, operations, and marketing.
“This transition was done in a phased manner over six months as we launched to test and implement AI agents in various functions,” the spokesperson stated. “The strategy ensured that while manual processes were being eliminated, the automated systems were fully capable of meeting the high standards of service that our customers have come to expect.”
Livspace, a home decor company supported by Ikea, announced that Saurabh Jain will relocate aside to focus on personal interests, adding that this alter is part of the company’s overall transformation.
Livspace layoffs 1000 employees: Contrast AI Summit’s job creation claims
The company pointed out the major alters brought about by AI to various departments. In terms of design, AI-powered mood boards and 3D rconcludeering capabilities have reduced the time spent from concept to visualisation by 60 per cent.
In sales, AI-powered voice assistants, lead scoring, and automated nurturing platforms are now utilized for top-of-the-funnel activities, allowing human sales teams to focus on high-intent customer consultations.
In terms of operations, such as supply chain management and project management, predictive AI platforms are now utilized to manage the workflow, minimising the necessary for human monitoring of delivery schedules.
In marketing, the company has implemented a “creative factory” approach, which has automated ad creation and resulted in a tenfold increase in campaign output.
According to a report by ET, the company spokesperson stated, “Livspace is creating substantial investments in AI and technology to provide better customer outcomes with greater accuracy. The company is embracing the future of work rather than clinging to traditional ways of doing business.”
Livspace was founded in 2015 by Ramakant Sharma and Anuj Srivastava. The company brings homeowners, designers, and suppliers toobtainher for comprehensive home interior solutions.
The company achieved unicorn status in 2022 after raising USD 180 million at a valuation of over USD 1 billion. In the previous year, Srivastava stepped down to become the company’s chairman, and Sharma, who was the chief operating officer, became the company’s chief executive officer.
For the financial year concludeed March 2025, the company posted revenue of USD 231 million and a net loss of USD 39 million.
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