Bengalur, Feb 21 : Bengaluru based home decor startup Livspace has laid off approximately 1,000 employees, around 12% of its workforce, over the past six months as it implements artificial intelligence (AI) across key operations. The company also announced the exit of co-founder Saurabh Jain, who steps down after 11 years to pursue personal interests.
A company spokesperson said the workforce reduction is part of a phased transition, allowing AI systems to take over functions in sales, design, operations, and marketing. “This realignment has been gradual to ensure automated systems maintain the high standard of service expected by customers,” the spokesperson added.
In design, AI-powered mood boards and 3D rendering tools have cut the time from concept to visualization by 60%. Sales teams now leverage AI voice agents, lead scoring, and automated nurturing tools to manage the top of the funnel, focusing human effort on high-intent consultations. Operations, including supply chain management and project tracking, are guided by predictive AI systems, while marketing has shifted to an automated “creative factory” model, increasing campaign output tenfold.
Founded in 2015 by Ramakant Sharma and Anuj Srivastava, Livspace connects homeowners with designers and vendors for end to end interiors. The company achieved unicorn status in 2022 after raising $180 million at a valuation exceeding $1 billion. Last year, Srivastava became chairman of the board, while Sharma took over as CEO.
For the fiscal year ended March 2025, Livspace reported $231 million in revenue with a net loss of $39 million. The spokesperson emphasized that the layoffs are a strategic move, not reactive cost cutting. “We are investing heavily in AI and technology to enhance customer outcomes and lean into the future of work,” the statement said.