Livspace has laid off approximately 1,000 employees, representing about 12 per cent of its workforce, as part of what the company describes as a planned internal reorganisation.
In a statement, the company said the restructuring is aimed at increasing its focus on artificial intelligence (AI) and automation. However, the workforce reduction comes after a reported four-year gap without new funding and continued efforts to move toward profitability.
Some media reports have suggested that the proportion of employees affected may be closer to 25 per cent, though the company has not confirmed this figure.
This is not the first round of job cuts at Livspace. The company reduced about two per cent of its workforce in March 2023. Earlier, during the COVID-19 pandemic in 2020, approximately 450 employees were laid off.
According to the company, the latest restructuring is part of a broader strategy to integrate AI tools across functions such as sales, design, operations, and marketing. Livspace stated that it has been testing AI-driven systems over the past six months to automate certain tasks previously handled manually, while maintaining service quality.
Separately, co-founder Saurabh Jain is set to leave the company after 11 years, citing personal reasons.
In September 2025, reports indicated that Livspace had adopted a third-party agentic AI recruitment-intelligence platform to streamline hiring processes and improve efficiency across roles and geographies.
Founded in 2014, Livspace has raised more than $450 million from investors including KKR and Jungle Ventures. The company achieved unicorn status in 2022 following a $180 million funding round led by KKR.
For the financial year ending March 2025, Livspace reported revenue of Rs 1,460 crore and stated that it reduced its losses by 42 per cent compared to the previous year. The company operates across India, Southeast Asia, and the Middle East.
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