Layoffs · Commerce & Consumer Brands

Livspace cuts 12% staff for AI integration

By Startup Enthusiast · 20 February 2026

What they do

Livspace connects homeowners with designers and contractors for renovation projects

The company cut 1,000 employees (12% workforce) over six months to integrate AI agents across operations

This move follows past job cuts while the firm reported narrowing losses in FY25

Livspace has cut 1,000 employees representing 12% of its total workforce over the last six months.
The layoffs are driven by a strategic shift to integrate advanced AI agents across key departments like Sales and Design.
Co-founder Saurabh Jain quit the company after serving as Chief Business Officer for several years.
Management describes the reduction as a reallocation of resources for long-run growth rather than reactive cost-cutting.
The company aims to become an 'AI-native agentic organisation' through this technological transformation.
This event marks another significant reduction following previous layoffs in 2023 and 2020.
Livspace continues to operate as a unicorn with a valuation exceeding $1 billion.
The restructuring coincides with financial improvements including narrowed losses in the most recent fiscal year.

The shift highlights a broader industry trend of using automation to reduce operational costs.
Livspace is transitioning from traditional service models to technology-driven efficiency.
The departure of a co-founder signals major internal changes alongside the workforce reduction.

Livspace operates an omnichannel platform for home interiors and renovation services.
It connects homeowners directly with professional designers and verified contractors.
The company also works with vendors to supply materials for renovation projects.
Revenue reached Rs 1,460 crore in FY25 showing steady top-line growth.
The business focuses on simplifying the complex process of home renovation.
It serves residential customers seeking customized interior design solutions.
The platform aggregates multiple service providers under one unified interface.
Livspace manages the end-to-end delivery of interior projects for clients.

KKR (backer) — Global investment management firm acting as a backer.
Ingka Group Investments (investor) — Investment arm of the IKEA parent company.
TPG Growth (investor) — Private equity firm focused on growth-stage investments.
Goldman Sachs (investor) — Global financial services firm providing investment capital.
Bessemer Venture Partners (investor) — Venture capital firm supporting early and growth-stage companies.
Jungle Ventures (investor) — Venture capital firm investing in Southeast Asian and Indian startups.