Bengaluru-based Livspace fires 1,000 employees, co-founder quits, in massive AI shakeup

Livspace, a Bengaluru-based home decor firm has laid off 1,000 employees as the startup focuses on lowering cost and transition towards using more AI. Livspace's cofounder, Saurabh Jain, has left too.

Artificial intelligence (AI) is shaking up the job market, and not just for IT companies. Now, Livspace, a Bengaluru-based home decor startup, has laid off 1,000 workers as it prepares to shift towards an AI-driven approach. Livspace is backed by global investment firm KKR.

As per Moneycontrol, this layoff accounts for 12 per cent of Livspace’s total workforce. The Bengaluru-based startup is reportedly undertaking a major reorganisation in an effort to reduce costs and focus more on AI. This move coincides with discussions at the India AI Impact Summit 2026 in Delhi, where global leaders are debating the employment effects of artificial intelligence.

Amid this organisational transition, cofounder Saurabh Jain has also left Livspace after an 11-year tenure. Jain, who joined the company following the acquisition of his startup DezignUp in 2015 and was elevated to chief business officer in 2022.

At a time when almost every major firm is pushing towards more AI adoption in the workplace, Livspace too seems to be eyeing for more productivity with AI. A spokesperson told Moneycontrol, “As we look at the next phase of our growth, we are fundamentally reorganizing our internal operations to become an AI-native agentic organization.”

However, Livspace insists that this is not a decision aimed at saving costs. A company spokesperson said, "To be clear, this isn't a reactive cost-cut. It’s a strategic reallocation of resources.”

The past few months have been quite tricky for the job market. From Amazon and Microsoft to TCS and Accenture, every major firm has announced massive layoffs, accounting for over 1 lakh workers.