(L-R) Ravi Mhatre and Bejul Somaia, partners, Lightspeed Venture Partners.Home decor startup Livspace has laid off around 1,000 employees, or about 12 per cent of its workforce, over the past six months as part of an internal reorganisation driven by artificial intelligence adoption.
Cofounder Saurabh Jain has also exited the company after 11 years.
A spokesperson for the Bengaluru-based startup said in a statement that the workforce reduction was part of a measured, phased transition as the company integrates AI agents and automation across core functions, including sales, design, operations and marketing.
“This realignment has taken place gradually over the last six months as we meticulously tested and deployed our AI agents across various functions,” the statement read. “This deliberate pace allowed us to ensure that as manual roles were phased out, our automated systems were fully capable of maintaining the high standard of service our customers expect.”
The Ikea-backed Livspace said Jain will pursue personal interests, adding that his departure coincides with the company’s operational transformation.
The company said that in design, AI-powered mood boarding and 3D rendering tools have reduced the time from concept to visualisation by 60 per cent. In sales, AI-based voice agents, lead-scoring systems and automated nurturing tools now manage the top of the funnel, allowing human sales staff to focus on high-intent consultations.
Operations, including supply chain management and project tracking, are now governed by predictive AI systems, reducing manual oversight of delivery timelines. In marketing, the company has moved to a “creative factory” model, automating ad creation and increasing campaign output tenfold.
The spokesperson said Livspace is investing heavily in AI and technology to deliver better customer outcomes with greater precision, adding that the company is choosing to lean into the future of work rather than cling to legacy operational models.
Founded in 2015 by Ramakant Sharma and Anuj Srivastava, Livspace connects homeowners with designers and vendors for end-to-end home interiors. The company became a unicorn in 2022 after raising $180 million at a valuation exceeding $1 billion. Last year, Srivastava transitioned to chairman of the board, while Sharma, then chief operating officer, took over as chief executive officer.
For the fiscal year ended March 2025, the company reported revenue of $231 million and a net loss of $39 million.
“To be clear, this isn’t reactive cost-cutting. It’s a strategic reallocation of resources,” the statement noted.
Leave a Reply