Dwelling inside and renovation platform Livspace has laid off about 1,000 staff, 25% of its 4,000-strong workforce, because the unicorn transitions to an AI-native, agentic group, in response to individuals conscious of the event.
Individually, co-founder Saurabh Jain has exited the corporate, the individuals added.
Livspace elevated Saurabh Jain in 2022, then its chief enterprise officer, as co-founder and chief government for India operations, as a part of its broader top-level reshuffle that additionally included appointing Lalit Mittal as chief enterprise officer for the India enterprise.
A Livspace spokesperson mentioned Jain is leaving after greater than a decade on the firm. “After 11 exceptional years, our co-founder, Saurabh Jain, has determined to maneuver on to pursue his private pursuits. Saurabh has been a cornerstone of Livspace since day one and was completely instrumental in scaling the corporate to its present heights,” the spokesperson mentioned.
Though individuals cited above peg the cuts at about 25% of Livspace’s workforce, or round 1,000 staff, the corporate didn’t disclose the quantity. As a substitute, the spokesperson mentioned the modifications have been a part of a “measured, phased transition involving roughly 12% of our workforce”.
AI transition
The spokesperson mentioned the transfer adopted an inner reorganization as the corporate appears at its subsequent part of progress. “We’re basically reorganizing our inner operations to turn into an AI-native agentic group,” the spokesperson mentioned.
The corporate added that it has “built-in superior AI brokers and automation” throughout gross sales, operations, design, and advertising and marketing, and that “duties that have been beforehand handbook are actually dealt with by clever techniques”, indicating that the transition affected roles and workstreams throughout these features.
Calling it “not a reactive cost-cut” however “a strategic reallocation of sources”, the spokesperson mentioned Livspace is “investing closely in AI and know-how” to enhance buyer outcomes and is “selecting to lean into the way forward for work moderately than clinging to legacy operational fashions”.
The spokesperson additionally mentioned the realignment was rolled out over the previous six months as the corporate examined and deployed AI brokers, and that the phased strategy was meant to make sure service ranges have been maintained as handbook roles have been phased out.
Livspace sells end-to-end dwelling inside design and renovation providers, together with modular interiors and allied execution work, and was based by Ramakant Sharma and Anuj Srivastava in 2014.
The corporate has raised $527 million in fairness funding throughout 13 rounds, in response to market intelligence platform Tracxn. Its traders embrace KKR, TPG, Ingka Investments, Bessemer Enterprise Companions, Jungle Ventures, and Helion Enterprise Companions, amongst others. Tracxn lists the corporate’s largest disclosed funding spherical as a $184 million Collection F on 7 February 2022 led by KKR, and pegs its post-money valuation at $957 million as of 23 June 2022.
Livspace operates in a crowded dwelling interiors and furnishings market, the place funded gamers equivalent to HomeLane and Pepperfry compete for patrons looking for design-and-execution providers and furnishings purchases.
Gurugram-based digital media platform Entrackr reported on 14 February that omnichannel furnishings retailer Pepperfry is seeking to increase about $18 million in a down spherical, highlighting strain on valuations within the dwelling and furnishings section.
Within the dwelling interiors class, HomeLane has additionally raised capital from traders equivalent to Accel, Peak XV Companions, and Pidilite, amongst others.
AI-led layoffs
Layoffs throughout tech and startups have persevered since early 2020 amid a push for value management, and have more and more been framed as restructuring tied to automation and the adoption of generative AI instruments, with corporations pruning roles at the same time as they spend extra on AI-led supply.
In 2025, giant know-how companies additionally lower jobs as they reorganized round AI-led merchandise and automation. Reuters reported on 28 October that Amazon was focusing on as many as 30,000 company job cuts, its largest discount since late 2022. Microsofttoo, confirmed a contemporary spherical of layoffs in July 2025 of about 9,000 staff, or practically 4% of its workforce, amid a broader restructuring.
In India’s startup ecosystem, layoffs continued by means of 2025 throughout sectors equivalent to electrical mobility, on-line gaming, and logistics. Knowledge from Layoffs.fyi confirmed greater than 4,200 job cuts throughout 42 Indian tech startups between January and October 2025, together with Ola Electrical (1,000), Games24x7 (580), Head Digital Works (500), VerSe Innovation (350), Porter (over 350), Otipy (about 300) and Zepto (as much as 300), amongst others.