Livspace lays off nearly 1,000 employees, co-founder Saurabh Jain quits after 11 years

The home interiors unicorn Livspace has announced a major organizational overhaul, shedding roughly 1,000 roles as it pivots toward a technology-first, “AI-native” operational model. This significant downsizing coincides with the departure of co-founder Saurabh Jain, a cornerstone of the company since 2015.

The Bengaluru-based startup, backed by global investment giant KKR, stated that the move is a proactive step to integrate advanced AI agents across its business lifecycle, replacing manual processes that have defined the industry for years.

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The AI Shift: From Designers to Agents

Livspace revealed that it has spent the last six months testing and deploying AI systems to handle high-volume tasks. The reorganization impacts four primary departments:

• Design: AI-driven mood boarding and 3D rendering have slashed concept-to-visualization time by 60%.

• Sales: AI voice agents and automated lead-scoring now manage the initial sales funnel, leaving human experts to handle only complex consultations.

• Operations: Supply chain and project tracking are now governed by predictive AI, reducing the need for manual monitoring.

• Marketing: The company has shifted to a “Creative Factory” model, using AI to increase ad output tenfold.

Saurabh Jain’s Exit: The End of an 11-Year Chapter

Saurabh Jain, who joined Livspace after the acquisition of his startup DezignUp in 2015, announced his departure on LinkedIn. Having served as Chief Business Officer and later elevated to co-founder and CEO for India, Jain’s exit marks a symbolic “graduation” as the company enters its automated era. He hinted at “working on something new,” suggesting another entrepreneurial venture is on the horizon.

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Strategic Reallocation vs. Cost-Cutting

While a spokesperson for Livspace insisted that this is a “strategic reallocation of resources” rather than a reactive cost-cut, market analysts point to the broader “funding winter.” The company has not raised external capital in nearly four years, and despite narrow losses in FY25, the pressure to become profitable in a competitive market like India and Southeast Asia remains high.

Reality Check

Livspace is framing these layoffs as an “AI-first” evolution. Still, the timing—amid a lack of fresh funding—suggests that automation is a convenient vehicle for necessary cost reduction. While AI can supercharge productivity, the home interior business is inherently high-touch and manual at the execution stage. Therefore, the real test will be whether “predictive AI” can actually manage on-ground contractors as effectively as the human supervisors who were just let go.

The Loopholes

The company claims a 12% reduction, but industry reports suggest the impact could be as high as 25% of the workforce. In fact, many roles in the home-decor space are contractual or vendor-based, which may not be reflected in official employee counts. Therefore, the “phased transition” loophole allows the company to minimize the headline shock while still significantly reducing its burn rate.

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What This Means for You

If you are a Livspace customer, the “Design” and “Sales” phase of your journey will likely be faster but more automated. First, expect to interact with AI voice agents for initial queries. Then, if you are an interior designer or a marketing professional, realize that “AI proficiency” is now the baseline requirement for staying relevant in the PropTech sector.

Finally, understand that Saurabh Jain’s new venture is likely to be in the “AI-enablement” space, given his experience architecting Livspace’s shift. You should watch for his next announcement if you are interested in the next wave of Bengaluru startups. Before signing a contract for home interiors, verify if the “AI-driven delivery” actually translates to on-time project completion on the ground.

What’s Next

Livspace is expected to conclude its phased transition by the end of Q1 2026. Then, the company will likely push for an IPO or a fresh funding round, using its new “leaner, AI-native” profile to attract investors. Finally, look for Saurabh Jain to reveal details of his new startup by the summer of 2026.

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End….

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