Livspace Layoffs: Around 1,000 Employees Affected Amid AI-Driven Reorganisation
The company described the job cuts not as reactive cost-cutting but as a strategic reallocation of resources.
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Livspace has laid off around 1,000 employees, nearly 12% of its workforce, as part of a phased internal reorganisation aimed at transforming the company into an AI-native organisation. The move comes amid limited external funding over the past four years and continuing questions about the company’s path to profitability.
While the company stated that about 12% of staff would be affected, a report by Moneycontrol suggested the figure could be closer to 25%. This marks the latest workforce reduction at Livspace, which previously cut about 2% of jobs in March 2023 and laid off roughly 450 employees in May 2020 during the Covid-19 lockdowns.
In its statement, the company described the job cuts not as reactive cost-cutting but as a strategic reallocation of resources. Livspace said it has integrated artificial intelligence and automation across core functions such as sales, design, operations, and marketing. According to the company, advanced AI agents now perform several tasks that were previously handled manually.
The transition unfolded gradually over the past six months, during which AI systems were tested and deployed across departments to maintain service quality as roles were phased out.
The restructuring coincides with a leadership change. Co-founder Saurabh Jain is stepping away after 11 years to pursue personal interests.
Founded in 2014, Livspace has raised more than USD 450 million from investors including KKR, Jungle Ventures, and Venturi Partners. It became a unicorn in 2022 after a USD 180 million funding round led by KKR.
For the fiscal year ending March 2025, the company reported revenue of INR 1,460 crore and reduced losses by 42%. Livspace operates across India, Southeast Asia, and the Middle East.
Livspace has laid off around 1,000 employees, nearly 12% of its workforce, as part of a phased internal reorganisation aimed at transforming the company into an AI-native organisation. The move comes amid limited external funding over the past four years and continuing questions about the company’s path to profitability.
While the company stated that about 12% of staff would be affected, a report by Moneycontrol suggested the figure could be closer to 25%. This marks the latest workforce reduction at Livspace, which previously cut about 2% of jobs in March 2023 and laid off roughly 450 employees in May 2020 during the Covid-19 lockdowns.
In its statement, the company described the job cuts not as reactive cost-cutting but as a strategic reallocation of resources. Livspace said it has integrated artificial intelligence and automation across core functions such as sales, design, operations, and marketing. According to the company, advanced AI agents now perform several tasks that were previously handled manually.
