Bengaluru-based home decor company Livspace has laid off 15 per cent of its workforce – or 450 employees – owing to unpredictable impact on its business during the Covid-19 lockdown times.
Anuj Srivastava, Co-founder and CEO at Livspace, said that letting go of employees who have helped all of us build this company into the dominant player in our industry is one of the most difficult decisions.
"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," Srivastava said in a statement on Tuesday.
Founded in 2014 by Srivastava, Ramakant Sharma and Shagufta Anurag to offer end-to-end home design experience, Livspace Group has three subsidiaries – Home interior, e-homemaker and Livspace Pte.
Livspace said it has decided to cover those impacted and their families with health insurance for another three months.
"Every confirmed employee who has spent more than 3 months at Livspace will receive extra pay proportional to the duration of their service," said the company.
It has created an outplacement team within the company which will help the impacted employees find another career opportunity.
In line with contractual requirements, and in addition to the assistance package, employees will receive one month's pay for serving the notice period or in lieu thereof.
"The impact of COVID 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.
Livspace recently raised $157.6 million in funding from investors such as TPG Growth, Goldman Sachs, Jungle Ventures, Bessemer Venture Partners and Helion Ventures and IKEA.