Bengaluru-based home interiors unicorn Livspace announced a major organizational shakeup, including the layoff of approximately 1,000 employees and the exit of its co-founder, Saurabh Jain.
The company described the move as a transition to becoming an “AI-native agentic organization,” replacing several manual roles with automated systems to streamline its operations.
The Workforce Realignment
The job cuts represent roughly 12% to 25% of the company’s total workforce (estimates vary by report).
- Phased Transition: A company spokesperson clarified that the layoffs were not a “sudden event” but a measured, phased transition that has taken place over the last six months.
- Affected Departments: The restructuring primarily impacted teams across Design, Sales, Operations, and Marketing.
- Rationale: Livspace insists the move is a “strategic reallocation of resources” rather than a reactive cost-cutting measure. The company is leaning into the “future of work” by integrating AI agents into core functions.
AI Integration Milestones
The company highlighted several areas where AI has already begun replacing or “supercharging” human roles:
| Department | AI Impact |
| Design | AI-driven mood boarding and 3D rendering have reduced concept-to-visualization time by 60%. |
| Sales | AI voice agents and automated lead scoring now handle early-stage customer interactions. |
| Operations | Predictive AI systems now manage supply chains and project tracking, reducing manual oversight. |
| Marketing | A new “Creative Factory” model has increased campaign output tenfold via automation. |
Leadership Exit: Saurabh Jain
Alongside the layoffs, co-founder Saurabh Jain stepped down after 11 years with the company.
- Legacy: Jain joined Livspace in 2015 when his startup, DezignUp, was acquired. He was instrumental in scaling the brand and most recently served as the CEO of India operations (after being elevated to co-founder status in 2022).
- Reason: Officially, Jain is leaving to “pursue personal interests.” His departure coincides with the company’s broader operational shift.
Financial Context
Despite the downsizing, Livspace’s financial health has been improving. For FY25, the company reported:
- Revenue: ₹1,460 crore (up 23% from ₹1,185 crore in FY24).
- Net Loss: Narrowed significantly to ₹242 crore (down from ₹416 crore in FY24).
- Funding Gap: The company has not raised external capital for nearly four years, placing sustained pressure on the leadership to achieve a clear path to profitability.
The “India AI Impact Summit” Timing
The announcement is particularly poignant as it occurred on the same day as the India AI Impact Summit 2026 in New Delhi, where global leaders debated whether AI would “augment” or “eliminate” jobs. Livspace’s decision serves as a high-profile case study of the latter, as a unicorn startup chooses to replace 1,000 roles with “agentic” AI systems.
