Livspace lays off over 1,000 employees as co-founder Saurabh Jain exits amid AI-driven transformation and workforce restructuring.
Livspace reduces workforce by 12% and co-founder Saurabh Jain resigns after 11 years during AI-led operational overhaul. (Credits- Livspace)
Livspace Update: Home‑interior and renovation platform Livspace has laid off approximately 1,000 employees, which constitutes 12% of its total workforce, because the company is undergoing an extensive transformation into artificial intelligence (AI) operations. The layoffs have affected roles across key departments, which include design, sales, operations, and marketing.
The company declared that it reduced its workforce to build better resource distribution because it plans to become an "AI-native agentic organisation." This means Livspace is integrating advanced AI tools and automation to handle tasks that employees used to complete manually through AI-based design generation, predictive operations systems, and automated customer interactions.
The layoffs form part of an ongoing internal reorganization that the company has conducted for six months to evaluate and implement AI technologies across its various business operations.
The affected employees span multiple verticals within the company. Livspace has not released specific departmental information, but reports indicate that sales, design, operations, and marketing team members experienced layoffs.
Saurabh Jain, who co-founded Livspace, has left the company after working there for 11 years. Jain joined Livspace in 2015 after his startup got acquired, and he took on important leadership roles that included Chief Business Officer. He played a crucial role in expanding the company's operations, which led to business growth throughout India and international markets. Jain announced his resignation while indicating that he would begin work on new business projects.
Co-founder Saurabh Jain has left his position at Livspace after serving 11 years with the company. Jain joined Livspace in 2015 after his startup was acquired and progressed to become Chief Business Officer. He announced his decision to leave through a LinkedIn post, which he used to share his plans.
The layoffs at Livspace occurred during a period when tech startups reduced their workforce because companies were adjusting their staff while implementing AI solutions. Analysts observe that numerous companies are using automation solutions to boost their operational productivity while they attempt to establish that their automation efforts operate as strategic business moves.
The decision by Livspace to cut 1000 jobs demonstrates how the company has shifted its operations toward artificial intelligence while facing external challenges that impact the entire startup industry. The company will experience a crucial transformation in 2026 because its co-founder, Saurabh Jain, has left the company at the same time they are reducing their workforce. The new strategic direction will determine how Livspace develops its business and competes with other companies in the home interiors market, which will be watched by investors, employees, and observers.
