Bengaluru, February 21: Bengaluru based home decor startup Livspace has laid off around 1,000 employees, accounting for nearly 12 percent of its total workforce, as the company accelerates its transition to an AI driven operating model.

Backed by global investment firm KKR, Livspace is reportedly undergoing a major internal reorganisation to become what it calls an “AI native agentic organisation”. The move comes at a time when artificial intelligence is reshaping hiring trends across sectors, far beyond traditional IT firms.

Shift Towards AI Led Operations

According to company statements, Livspace has integrated advanced AI agents and automation across core functions including Sales, Operations, Design and Marketing. Tasks that were previously handled manually are now increasingly managed by intelligent systems. Amazon Layoffs: Viral Video of India Office Party Sparks US Backlash and Claims of Offshoring Amid 16,000 Global Job Cuts.

A company spokesperson clarified that the layoffs are not a reactive cost cutting measure but a strategic reallocation of resources aimed at improving productivity and long term growth.

Co Founder Saurabh Jain Exits

Amid the restructuring, cofounder Saurabh Jain has exited the company after an 11 year tenure. Jain joined Livspace following the acquisition of his startup DezignUp in 2015 and was elevated to Chief Business Officer in 2022. Whirlpool Layoffs: Appliance Giant To Cut 341 Jobs at Iowa Refrigerator Plant as Part of Modernisation Drive.

Financial Performance and Past Layoffs

Livspace has undertaken workforce reductions in the past as well. In 2023, the company laid off nearly 100 employees, while over 400 roles were eliminated in 2020 as part of efforts to improve profitability.

Despite the job cuts, the company’s financials show improvement. Livspace’s revenue rose 23 percent to INR 1,460 crore in FY25, while losses narrowed to INR 242 crore from INR 416 crore in the previous financial year.

AI Impact on Jobs in Focus

The development coincides with broader discussions around AI and employment, including deliberations at the India AI Impact Summit 2026 in Delhi. Across industries, major companies have announced large scale layoffs as they adopt automation and AI technologies.

With its latest restructuring, Livspace joins a growing list of firms redefining workforce structures in response to rapid technological transformation.

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(The above story first appeared on LatestLY on Feb 21, 2026 05:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).