Livspace cuts 1,000 jobs as KKR-backed startup pushes AI-led restructuring

Home interiors platform Livspace has laid off around 1,000 employees, about 12% of its workforce, as part of a strategic shift to become an AI-native organisation, focusing on automation and productivity gains.

Home interiors startup Livspace has laid off approximately 1,000 employees, representing nearly 12% of its workforce, as it undertakes a major restructuring to deepen the use of artificial intelligence across its operations.

The layoffs, which cut across functions such as design, sales, operations and marketing, come as the KKR-backed company looks to reorganise its internal processes and operate as an “AI-native, agentic organisation,” according to a company spokesperson cited by Moneycontrol. Prior to the cuts, Livspace employed an estimated 7,000–8,000 people.

The company clarified that the move was not a reactive cost-cutting exercise but a strategic reallocation of resources. It has integrated advanced AI agents and automation tools into several core functions, replacing many manual processes and significantly boosting team productivity, the spokesperson said.

Livspace’s decision mirrors a broader trend among global technology firms such as Amazon and Microsoft, which have also reduced headcount while ramping up investments in AI-driven automation to streamline operations and manage costs.

This marks at least the second round of layoffs at Livspace in recent years. The company had cut around 100 jobs in 2023 and over 400 roles in 2020 as part of earlier restructuring efforts aimed at improving financial performance.

Despite the workforce reduction, Livspace’s financials have shown improvement. Revenue rose 23% to ₹1,460 crore in the financial year ended March 2025, compared with ₹1,185 crore the previous year, while losses narrowed to ₹242 crore from ₹416 crore.

In a parallel development, co-founder Saurabh Jain has stepped down from the company after more than a decade. Jain, who became chief business officer in 2022, has decided to move on to pursue personal interests, the company said.

Founded in 2014, Livspace has raised over $500 million in funding and was last valued at more than $1 billion.