IKEA-backed home design and decor startup Livspace is laying off 15% of its workforce as the Covid-19 pandemic and resultant nationwide lockdown hit its business.
The Bengaluru-based startup, Livspace Co-Founder and Chief Executive Officer Anuj Srivastava assured the impacted employees of severance pay along with an assistance package, as part of which every employee will receive a portion of their pay.
Livspace also announced that the 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.
Anuj also said that the company founders have let go 70% of their salaries and have given bonus cuts for the leadership team and success-based variable pay across the board. Over the past two months, the company has also slashed marketing and branding expenses to almost zero. He further said that if the business is still impacted, the company will take more measures to overcome the situation.
Livspace was founded in 2014 by Anuj Srivastava, Ramakant Sharma, and Shagufta Anurag. The company offers end-to-end home design experience for homeowners and home designers. Livspace Group has three entities – Home interior, e-homemaker, and Livspace Pte.
After this, Livspace joins a series of internet businesses like Swiggy, Zomato, Oyo, Cure. fit, Udaan, BlackBuck, Treebo, Acko, Fab Hotels, Meesho, Shuttl, Capillary, Niki.ai, and Fareportal — that have retrenched workers, including temporary staff, in the past few weeks.
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