The Bengaluru-based home design and renovation startup, Livspace is laying off 450 people which constitutes approx. 15% of its workforce as the COVID-19 pandemic and the nationwide lockdown which has negatively impacted its business.
The startup had raised about $150 million across multiple rounds from investors like TPG Growth, Goldman Sachs, Jungle Ventures, Bessemer Venture Partners, and Helion Ventures.
Livspace, which was started by Sharma and Anuj Srivastava in 2015, said the lockdown restrictions impacted its experience centers and its last-mile operations.
"The impact of COVID-19 on our business has been sudden and unpredictable. Hence, it was important that we become a leaner and more focused organization," said Ramakant Sharma, Co-founder, and COO at Livspace.
Employees who are being let go will receive one month's salary along with extra pay of one-four weeks for those who have spent more than three months at the startup, proportional to the duration of their service, Livspace said in a statement. Employees will also have a health cover for the next three months.
"We have extended their medical cover, have offered a monetary package to help them in these times, and we have also set up an outplacement cell," added Anuj Srivastava, co-founder, and CEO at Livspace.
The founders gave up their annual salary and its leadership team wrote off their annual bonuses in April this year. The company also rolled out success-based variable pay across the board.
"We mapped roles and people to the future course of the business and very carefully identified the ones who will be impacted," Livspace said in the statement.
With this, Livspace joins a series of internet businesses — including Uber, Swiggy, Zomato, Oyo, Cure.fit, Treebo, Acko, Fab Hotels, Meesho, Shuttl, and others that have experienced a similar hit and had to let go workers, including temporary staff, in the past few months.
Read about the latest developments amid COVID-19 and its impact across various industries here.