KKR-backed Livspace lays off around 1,000 employees; co-founder Saurabh Jain quits

KKR-backed home interiors startup Livspace has laid off around 1,000 employees — roughly 12% of its workforce — as part of an AI-led operational overhaul, even as co-founder Saurabh Jain exits the company after more than a decade.

The workforce reduction was first reported by Moneycontrol, citing people familiar with the matter. A company spokesperson confirmed the development to the publication, describing the move as part of a broader shift towards becoming what it called an “AI-native agentic organisation”.

The layoffs affect employees across design, sales, operations and marketing functions. Prior to the exercise, Bengaluru-based Livspace employed an estimated 7,000–8,000 staff. The latest cuts bring its total headcount down by at least 1,000 roles.

The restructuring marks one of the largest workforce reductions at the company to date.

In a statement to Moneycontrol, the spokesperson said the changes were not “reactive cost-cut” but a “strategic reallocation of resources”. The company said it has integrated advanced AI agents and automation across core functions, with tasks previously handled manually now performed by automated systems.

“In many areas, tasks that were previously manual are now handled by intelligent systems, while our existing teams are seeing their productivity supercharged,” the spokesperson said.

The timing is notable. The cuts come as policymakers and technology leaders gather in India to discuss artificial intelligence at the India AI Impact Summit 2026 in Delhi, where several executives have argued that AI will augment rather than replace jobs.

Livspace’s move suggests a more immediate shift in workforce structure within at least some technology-enabled consumer businesses.

Financial reset and prior layoffs

This is not the first time Livspace has trimmed staff. In 2023, the company cut nearly 100 jobs to improve its profitability profile. It also reduced headcount by more than 400 employees in 2020 amid pandemic-driven disruptions.

The measures appear to have strengthened its financial position. In FY25, Livspace reported revenue of Rs 1,460 crore, up 23% from Rs 1,185 crore in FY24. Losses narrowed to Rs 242 crore from Rs 416 crore over the same period.

Cost discipline has coincided with improved top-line growth and reduced losses.

Founded in 2014 by Ramakant Sharma, Anuj Srivastava and Shagufta Anurag, Livspace has raised more than $500 million to date and was last valued at over $1 billion. The company competes with Peak XV-backed HomeLane and other players in India’s organised home décor and interiors market.

KKR is among its key backers.

Co-founder departure

Alongside the workforce reduction, co-founder Saurabh Jain has stepped down. Jain, who joined Livspace in 2015 following the acquisition of his startup DezignUp, was elevated to chief business officer in 2022.

In its statement, the company described his exit as part of a “natural transition in leadership”.

“After 11 remarkable years, our co-founder Saurabh Jain has decided to move on to pursue his personal interests,” the spokesperson said, adding that he had been “instrumental in scaling the company to its current heights”.

Jain’s departure comes at a pivotal moment as the company recalibrates operations around AI-driven efficiency.

AI-led transformation

Livspace said its restructuring reflects heavy investment in AI to optimise internal processes. The company’s leadership has framed the move as a structural transformation rather than a short-term margin fix.

Whether AI integration will sustain improved financial performance remains to be seen. While automation can lower operating costs, the home interiors business remains labour-intensive in fulfilment and on-ground execution.

For now, Livspace is positioning itself as a technology-first operator in a traditionally fragmented industry.

The twin developments — a sizeable workforce reduction and the exit of a founding executive — signal a new phase for the company as it seeks to balance growth, profitability and technological transformation in a tightening funding environment.

How quickly that AI pivot translates into durable margins, and whether further restructuring follows, will determine the stability of India’s largest home interiors startup in the years ahead.