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Online home decorator startup Livspace has laid off more than 450 employees, according to news portal Inc42. Following this development, Livspace has become the latest startup to fall prey to coronavirus pandemic that has resulted in mass layoffs across the entire Indian startup industry.
Livspace’s co-founder and CEO, Anuj Srivastav, told INC42 that the firm is providing one month notice to the employees and is also offering servelance along with a special assitance package. he further said that the company may have to opt for salary adjustment if the economic downturn continues due to COVID-19 crises.
Srivastav went to add that despite taking drastic steps like co-founders taking pay cuts and bonus cuts for leadership team, more sweeping measures may be needed to cut down cost.
However, he equally maintained that the company is well capitalized and boasts solid fund reserves to overcome any economic uncertainty.
Livspace had raised $60 Mn earlier this year from Hongkong headquartred Tahoe Investment Group, Singaopre based Mercer Investment and EDB Investment. Ikea group franschise also happens to be one of the minority stakeholders in the company.
Established in 2014 by Anuj Srivastav, Ramakant Sharma and Shagufta Anurag, Livspace essentially offers end-to-end services for designing homes.
Although quite a few high profile startups had started giving pink slips, layoffs took form of tsunamic wave after the startups industry was overwhlemed by coronavirus crisis. Several international agencies have hinted that Indian economy may have to go through the worst phase in its history.
Chart showing number of employees laid off recently by high profile startups.
