IKEA-backed home design and decor startup Livspace has recently laid off 15% of its workforce as coronavirus turmoil impacts the company’s business. The company has also cut its expense by 25-30% in order to save itself from further losses.
The recent development comes just a month after the company said that it had not resorted to layoffs or pay cuts during the lockdowns. The decision to lay off employees was announced by the company on Monday and is likely to impact staff across various functions.
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.
In addition, Livspace has also announced to provide health coverage for the next three months to the impacted employees during this health crisis and has also set up an outplacement cell for them. Talking about the future possibilities, he added that the company may have to look at salary adjustments for other employees if the situation prolongs.
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 by Anuj Srivastava, Ramakant Sharma and Shagufta Anurag in 2014. 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.
Earlier, the company had raised $157.6million in funding from investors such as US-based venture capital firm TPG Growth, Goldman Sachs, Jungle Ventures, Bessemer Venture Partners and Helion Ventures as well as furniture retailer IKEA.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.