Bengaluru-based home décor and interior-design startup Livspace has laid off about 1,000 employees — roughly 12% of its workforce — as part of a planned transformation to become an AI-native company. The restructuring is among the largest recent workforce reductions in India’s home interiors sector and follows the company’s push to embed automation across its operations.
Background and company trajectory
Founded in 2014, Livspace grew into a leading end-to-end home interiors and renovation platform, expanding across multiple Indian cities and entering Southeast Asian and Middle Eastern markets. The company secured significant backing from global investors and reached unicorn valuation in 2022, becoming one of the most recognised startups in India’s home improvement space.
Restructuring driven by AI and automation
Livspace describes the job cuts as a “phased internal restructuring” tied to the gradual integration of artificial intelligence and automation across functions such as design, sales, customer support and operations. According to company statements, AI systems and automation now handle several repetitive, workflow-heavy tasks, reducing demand for certain roles.
Practical applications cited by the company include faster generation of design mock-ups, data-driven material selection, predictive cost estimation and automated project scheduling. Back-end automation is also intended to cut manual intervention in operations, lower turnaround times and improve overall efficiency for customers.
Leadership changes amid transition
Alongside the workforce reduction, one of Livspace’s co-founders has stepped back from an active leadership role. The leadership reshuffle comes as the company repositions itself in a competitive market that has seen shifting demand and tighter capital conditions over recent years.
Sector context and implications for talent
Analysts say Livspace’s move mirrors a broader trend among Indian startups: as funding becomes more selective, companies are prioritising profitability and operational resilience by adopting AI and automation to improve margins. The home interiors sector has faced fluctuating demand and pressure to balance expansion with cost discipline.
The transition highlights the workforce impact of automation. Experts advise that professionals in design, operations and digital services will need to upskill in AI tools and data-centric workflows to remain competitive as firms reconfigure roles around technology-driven processes.
Outlook
Despite the reduction in headcount, Livspace continues to operate across its existing markets and is focusing on delivering enhanced customer experiences through technology. The company’s long-term strategy appears aimed at building a scalable, AI-powered platform capable of reducing costs while improving personalisation and speed — a direction that may influence the broader home décor and proptech industry in India.
