Livspace has let go of about 1,000 employees, that is, about 12 per cent of its staff, as part of a planned internal reorganisation. As per the company, this move is to become more focused on artificial intelligence (AI). However, the layoffs also come after four years without new funding and no clear path to making a profit.
Some reports suggest the actual number of people affected could be closer to 25 per cent. This isn’t the first time Livspace has cut jobs. It laid off two per cent of its workforce in March 2023 and about 450 people during the COVID-19 lockdowns in 2020.
Livspace says the latest cuts are not just to save money. Instead, it’s shifting resources to use AI and automation more deeply in areas such as sales, design, operations, and marketing. The company has started using advanced AI tools to perform tasks that were previously done by people. This change has been happening gradually over the past six months, with the company testing AI systems to make sure service quality stays high.
At the same time, co-founder Saurabh Jain is leaving the company after 11 years to focus on personal goals.
In September 2025, it was reported that a third-party agentic AI recruitment-intelligence platform at Livspace was helping the company acquire talent faster, allowing smarter and fairer hiring outcomes across levels and geographies.
Livspace was founded in 2014 and has raised over $450 million from investors such as KKR and Jungle Ventures. It became a unicorn in 2022 after a $180 million funding round led by KKR. For the year ending March 2025, it earned Rs 1,460 crore in revenue and cut its losses by 42 per cent. It operates in India, Southeast Asia, and the Middle East.