Livspace layoffs 1000 employees as the Bengaluru-based home decor startup shifts toward AI-driven operations. The move reflects a growing trend of AI-led restructuring in tech companies.
Artificial intelligence (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 move coincides with discussions at the India AI Impact Summit 2026 in Delhi, where global leaders are debating the employment effects of artificial intelligence.
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 layoffshttp://Trandbloomaura.com
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 told Moneycontrol, “As we look 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 said, “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 tasks that were previously performed manually now handled by intelligent systems. The company explained, “We’ve integrated advanced AI agents and automation across our core functions — Sales, Ops, Design, and Marketing. In many areas, tasks that were previously manual are now handled by intelligent 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.
– Ends
Impact of AI on the Job Market
Artificial intelligence is increasingly reshaping the global workforce. Companies are adopting automation to improve efficiency and reduce operational costs. While AI creates new opportunities, it also leads to job restructuring across industries.
Experts say businesses must balance technological innovation with workforce stability. Governments and organizations are also discussing policies to support workers affected by automation.
Livspace’s decision reflects a broader shift toward AI-driven business models, where companies rely on intelligent systems to streamline operations and improve productivity.
Frequently Asked Questions (FAQs)
Why did Livspace lay off 1,000 employees?
Livspace laid off around 1,000 employees as part of a major organizational restructuring. The Bengaluru-based home decor startup is shifting toward AI-driven automation to improve efficiency and reduce operational costs.
Which company announced layoffs due to AI automation?
Livspace, a Bengaluru-based home decor startup backed by KKR, announced layoffs affecting nearly 1,000 workers as it integrates artificial intelligence into its core operations.
Who is the co-founder who quit Livspace?
Livspace co-founder Saurabh Jain has stepped down after an 11-year tenure with the company. He played a key role in scaling the company’s business operations.
How will AI impact jobs in companies like Livspace?
Artificial intelligence is increasingly automating repetitive tasks across industries. Companies like Livspace are adopting AI technologies to streamline operations, which may lead to workforce restructuring.
Is Livspace the only company laying off employees due to AI?
No, several global companies are restructuring their workforce as AI adoption increases. Many firms are investing in automation to improve productivity and remain competitive.
