Livspace, the Online home decor startup has laid-off 15 per cent of its workforce or around 450 employees as the firm’s business has been hampered by the ongoing COVID-19 lockdown.
Livspace’s experience centres and last-mile operations were severely affected due to the restrictions imposed forcing the company to announce layoffs, said a media report.
However, the affected employees will receive a month’s salary along with extra pay of one to four weeks for those who have been part of the startup for more than three years, proportional to the duration of their services, the report added.
Additionally, the company has also announced to provide health coverage for the next three months to the affected employees during this health crisis and has also set up an outplacement cell for them.
Ramakant Sharma and Anuj Srivastava, the firm’s founders, had also let go off their annual salaries with the leadership team writing off their yearly bonuses in April this year.
Given the COVID-19 outbreak, all startups and businesses are desperately gasping for air. Pay cuts and layoffs have become the new normal and they are resorting to trimming their staff in a bid to go lean and conserve cash.
With this, Livspace has joined the list of over a dozen companies who have either furloughed or fired employees or slashed their salaries in the past two months. The list includes Swiggy, Zomato, FabHotels, Paytm, Shadowfax and Uber among others.
The firm had raised $60 million in funding, back in January. The firm’s direct competitor HomeLane also has been facing a sharp fall in revenue due to the ongoing pandemic.