Livspace has laid off 1,000 employees, and the co-founder has resigned. Find out if AI is the reason.

Artificial intelligence is impacting jobs in the market, not just the IT sector but other sectors as well. For some time now, there have been reports of job losses and companies laying off employees due to the use of AI. Recently, Bengaluru-based home interior and renovation startup Livspace laid off nearly 1,000 employees after adopting artificial intelligence (AI) technology. Co-founder Saurabh Jain also resigned from his position after 11 years. Let’s learn more about this.

This layoff affects 12 percent of Livspace’s total workforce. The Bengaluru-based startup is reportedly making a major change to reduce costs and focus more on AI. Along with the significant employee layoffs, co-founder Saurabh Jain has also left Livspace after 11 years. Jain joined Livspace in 2015 after the acquisition of his startup, DesignUp, and was promoted to Chief Business Officer in 2022.

In this era of AI, most companies are focusing on increasing productivity and reducing costs through AI, and Livspace is also working to increase productivity through AI. A company spokesperson stated that this move is not aimed at reducing costs. In fact, it will not result in immediate cost reductions, but rather focuses on efficient resource utilization.

Livspace has implemented automation in several departments, resulting in many previously manual tasks now being managed by artificial intelligence. The company has integrated advanced AI agents and automation into key departments such as sales, operations, design, and marketing. In many sectors, previously manual tasks are now being handled by intelligent systems. This is not the first time Livspace has reduced its staff. The company laid off about 100 employees in 2023 and eliminated more than 400 jobs in 2020.