Livspace has reportedly laid off about 1,000 employees, which accounts for about 12% of its total workforce. According to media reports, this move comes as part of the company’s internal restructuring.
The company is said to have made this move as it aims to become an AI-native organisation. However, the company is also reported to have been facing external funding over the past four years, creating an absence of profitability, according to Entrackr.
Livspace stated that about 12% of its workforce would be affected by the restructuring, although a report by Moneycontrol suggested the actual impact could reach nearly 25%. The company has undertaken workforce reductions before, including a 2% cut in March 2023 and the layoff of roughly 450 employees during the Covid-19 lockdowns in May 2020.
In its official communication, Livspace clarified that the latest move was not a short-term cost-saving exercise but part of a broader strategic shift. The company described it as a redistribution of resources aligned with deeper adoption of artificial intelligence and automation across key business areas such as sales, design, operations, and marketing.
Livspace explained that advanced AI agents have now been introduced to manage several processes that were previously handled manually. The transition was implemented progressively over the past six months, allowing the company to test and scale AI systems while maintaining service standards as certain roles were gradually phased out.
The announcement also coincided with a leadership change, as co-founder Saurabh Jain decided to step down after 11 years with the company to focus on personal pursuits.
