Livspace, the Bengaluru-based home décor and interior design startup, has laid off about 1,000 employees—nearly 12% of its workforce—as part of a phased business transformation to become an AI-native organisation. The restructuring is among the largest recent workforce reductions in India’s home interiors sector.
Background and growth trajectory
Founded in 2014, Livspace grew rapidly into a full-service platform for home interiors and renovations, expanding across multiple Indian cities and into Southeast Asia and the Middle East. Backed by global investors, the company achieved unicorn status in 2022 and became one of the most prominent names in India’s home-improvement startup ecosystem.
Rationale for the restructuring
The company says the reductions are part of a “phased internal restructuring” driven by a gradual integration of artificial intelligence and automation across functions such as design, sales, customer support and operations. As AI-driven tools and automated workflows take over repetitive and process-heavy tasks, certain roles have been rendered redundant, the company has indicated.
How AI is being used
Livspace is reportedly embedding AI into core processes: generating faster design mock-ups, optimising material choices, forecasting project costs, and streamlining timelines. Backend automation is also being used to reduce manual handoffs, improve operational efficiency and shorten customer turnaround times.
Leadership change amid transition
Concurrently, one of Livspace’s co-founders has stepped down from an active leadership role. The leadership reshuffle accompanies the company’s repositioning as it adapts to stronger investor focus on profitability and sustainable growth in a maturing startup landscape.
Wider industry context
The home interiors sector has experienced variable demand in recent years as economic uncertainties and changing consumer spending patterns have affected discretionary renovation activity. Startups in the segment face pressure to reconcile past expansion strategies with cost discipline; many are adopting technology and AI to improve margins and operational resilience.
Implications for employees and the workforce
Observers say the layoffs underscore the broader challenge of job displacement in the age of AI. While automation can raise productivity and reduce costs, it also shifts skill requirements. Professionals in design, operations and digital services will likely need to upskill in AI-enabled tools and data-centric workflows to remain competitive.
Despite the workforce reduction, Livspace continues to operate in its existing markets and is emphasising technology-led improvements to customer experience. The company’s strategic objective appears to be building a scalable, AI-powered platform that enhances personalisation and speed while lowering costs—an approach that could reshape the competitive dynamics of India’s home décor and proptech industries.
