Home design and renovation start-up Livspace has decided to lay off 450 employees, which account 15% of its total workforce, due to the impact of COVID-19 pandemic and nationwide lockdown. Businesses in the discretionary purchase sector have been experiencing sudden and unpredictable impact. Livspace has been no different. According to the Bengaluru-based company, it has experienced a sudden and unpredictable impact with experience centers and last-mile operations coming to a complete halt. The decision to downsize was the last resort, said the company.
The impact of COVID-19 is taking unpredictable turns. To stay relevant businesses are being forced to become leaner and hence downsize their employee count.
“Letting go of our employees who have helped all of us build this company into the dominant player in our industry is one of the most difficult decisions that we had to take,” said Anuj Srivastava, co-founder and CEO at Livspace. The company in its statement has added that it is creating a dedicated outplacement team which will help the impacted employees find another career opportunity. Further, it will provide health cover to the 450 employees and their families for the next three months. Also, the confirmed employees, who have spent more than three months at Livspace, will receive extra pay proportional to the duration of their service.