Bangalore Unicorn Livspace Lays Off 1,000
Bengaluru-based SaaS unicorn Livspace has fired 1,000 employees and announced the exit of a co-founder. The organizational shakeup is reportedly part of a major pivot toward AI-first products, highlighting the pressure on established SaaS companies to adapt to new platform shifts.
- The departing co-founder is Saurabh Jain, who was with the company for 11 years and had been elevated to the co-founder and CEO of India operations role in 2022. Jain, who initially joined Livspace in 2015 after his own startup was acquired, announced his exit on LinkedIn, stating he is "working on something new." - The layoffs represent approximately 12% of Livspace's workforce and were concentrated in the design, sales, operations, and marketing departments. The company stated the transition was phased over the last six months and is a "strategic reallocation of resources" rather than a reactive cost-cutting measure. - While the company cites its AI pivot as the reason for the restructuring, it has also not raised external funding for nearly four years, facing a challenging funding environment. For the fiscal year ending March 2025, Livspace reported revenue of ₹1,460 crore and had narrowed its losses by 42%. - This is the third round of significant layoffs for the company, which previously cut 450 jobs in May 2020 during the COVID-19 lockdowns and another 2% of its staff in March 2023. - The company's AI integration includes using AI for mood boarding and 3D rendering, which has reportedly cut the time from concept to visualization by 60%. In sales, AI agents are being used for lead-scoring and automated nurturing to focus sales personnel on high-intent consultations. - Livspace achieved unicorn status in February 2022 after a $180 million Series F funding round led by KKR. The company has raised over
