BENGALURU: KKR-backed home interiors platform Livspace has laid off at least 1,000 employees, around 12% of its workforce, in the last six months, as it moves to replace several manual roles with artificial intelligence systems.
The Bengaluru-based company previously had about 8,000 employees. The job cuts have affected teams across design, sales, operations and marketing.
A company spokesperson confirmed the changes, saying: “At Livspace, we’ve always been a technology-first company. As we look at the next phase of our growth, we are fundamentally reorganising our internal operations to become an AI-native agentic organisation.”
The spokesperson added, “To be clear, this isn't a reactive cost-cut. It’s a strategic reallocation of resources… This hasn't been a sudden, singular event. Rather, it has been a measured, phased transition involving approximately 12% of our workforce.”
Alongside the workforce realignment, co-founder Saurabh Jain has stepped down after 11 years with the company. “Saurabh has been a cornerstone of Livspace since day one and was absolutely instrumental in scaling the company to its current heights,” the spokesperson said.
According to the company, AI agents and automation have now been integrated across core functions. “What this means in practice is that we’ve integrated advanced AI agents and automation across our core functions—Sales, Ops, Design, and Marketing. In many areas, tasks that were previously manual are now handled by intelligent systems, while our existing teams are seeing their productivity supercharged,” the spokesperson said.
In design, AI-driven mood boarding and 3D rendering have reduced the time from concept to visualisation by 60 percent. In sales, AI voice agents and automated lead scoring now manage the early stages of customer interaction. Operations are being handled through predictive AI systems, while marketing has moved to a ‘Creative Factory’ model, increasing output tenfold.
In FY25, the company’s revenue rose 23% to Rs 1,460 crore from Rs 1,185 crore in FY24. Losses narrowed from Rs 416 crore to Rs 242 crore.