Livspace Sacks 1,000 Employees As Company Focuses On AI; Co-Founder Saurabh Jain Quits
Home decor startup Livspace has sacked over 1,000 employees, nearly 12% of its workforce, as part of a cost-cutting and AI-led restructuring, a report said. Co-founder Saurabh Jain has also quit. The Bengaluru-based firm said the move is a strategic shift to become an “AI-native agentic organisation,” not reactive downsizing.
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Bengaluru: In a major shakeup, home decor and interior furnishing startup Livspace has sacked over 1,000 employees, which accounts for about 12 percent of its total workforce.
The move is aimed at lowering costs and replacing people with AI, according to a Moneycontrol report. One of its co-founders, Saurabh Jain, who was promoted from the role of Chief Business Officer (CBO) only in 2022, has also quit the company.
The decision has impacted employees across departments like design, sales, operations, marketing and more. Bengaluru-based Livspace had around 7,000-8,000 staff prior to the cost-cutting exercise and has gradually reduced headcount by at least around 1,000 people.
Notably, the move comes at a time when countries and several CEOs from around the world are in India discussing the impact of AI on jobs at the India AI Impact Summit 2026 in New Delhi.
“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,” a spokesperson said as quoted by Moneycontrol.
Justifying the move, they said, “To be clear, this isn't a reactive cost-cut. It’s a strategic reallocation of resources,” the spokesperson added.
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