Livspace Lays Off 1,000 Employees, Co-Founder Exits Amid AI Pivot

Home decor startup Livspace has executed significant workforce reductions and a leadership change as part of a strategic shift toward AI-native operations. 

Workforce Reduction: 1,000 Jobs Cut 

As per The Moneycontrol report, on February 20, 2026, Livspace confirmed laying off approximately 1,000 employees, representing 12% of its 7,000-8,000 pre-layoff workforce.  

The cuts impacted multiple functions, including design, sales, operations, and marketing. This marks the company's 3rd major layoff since 2020, following previous reductions of 400 (2020) and 100 (2023) employees. 

Strategic AI Integration 

A Livspace spokesperson characterized the move as a "strategic reallocation of resources" to become an "AI-native agentic organization." The company is deploying advanced AI agents and automation across core functions, replacing manual tasks and enhancing team productivity. 

This aligns with broader industry trends but contrasts with concurrent global discussions at the AI India Impact Summit 2026, emphasising AI's job-preserving potential. 

Co-Founder Departure 

Concurrent with the layoffs, co-founder Saurabh Jain resigned after 11 years. Jain, who joined via the 2015 DezignUp acquisition and later served as Chief Business Officer, is pursuing personal interests. The company acknowledged his role in scaling operations. 

Read More: Activate Partners with NVIDIA to Support Early-Stage AI Startups! 

Financial Performance Context 

Livspace's FY25 results showed a 23% revenue increase to ₹1,460 crore and reduced losses from ₹416 crore to ₹242 crore. The layoffs aim to further improve profitability through operational efficiency gains from AI integration. 

Conclusion 

Livspace's elimination of 1,000 jobs and co-founder Saurabh Jain's exit reflect a decisive pivot to AI-driven business models. While positioning the company for long-term efficiency, the move highlights ongoing tensions between technological advancement and workforce stability in the startup ecosystem. 

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