Livspace Cuts 12% Workforce to Automate Design and Sales

Home interior and renovation unicorn Livspace has announced the layoff of approximately 1,000 employees, representing roughly 12% of its workforce.

The move, confirmed in February 2026, coincides with the company’s pivot toward becoming an “AI-native agentic organization” and the departure of co-founder Saurabh Jain after an 11-year tenure.

Transition to an AI-Native Model

Livspace described the job cuts as a “strategic reallocation of resources” rather than a reactive cost-cutting measure.

Over the last six months, the Bengaluru-based startup has integrated advanced AI agents and automation across core functions, including Sales, Design, Operations, and Marketing.

The company reported significant efficiency gains from these technological deployments:

Design: AI-powered mood boarding and 3D rendering have slashed concept-to-visualization time by 60%.
Sales: AI voice agents and automated lead-scoring systems now manage the top of the sales funnel.
Marketing: A “creative factory” model has automated ad creation, reportedly increasing campaign output tenfold.

Livspace High-Profile Leadership Exit

Alongside the restructuring, co-founder Saurabh Jain has stepped down to pursue personal interests and new entrepreneurial ventures.

Saurabh joined Livspace in 2015 following the acquisition of his startup, DezignUp, and was instrumental in scaling the company’s India operations.

His exit marks a significant leadership transition for the KKR-backed unicorn as it prepares for a potential public listing in the next 18–24 months.

Financial Context and Market Pressure

The layoffs come despite Livspace showing improved financial health.

In FY25, the company reported a 23% revenue increase to ₹1,460 crore, while narrowing its net losses from ₹416 crore to ₹242 crore.

However, the firm has not raised fresh external capital in nearly four years, facing a prolonged “funding winter” that has pressured late-stage startups to prioritize profitability.

This latest workforce reduction follows previous rounds in 2020 (450 employees) and 2023 (100 employees), signaling a definitive move toward leaner, technology-driven operations to ensure long-term sustainability.

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