Home design and renovation startup Livspace has decided to lay off 450 people, which account 15 percent of its total workforce, due to the impact of Covid-19 pandemic and nationwide lockdown.

The start-up said it has experienced a sudden and unpredictable impact with experience centers and last-mile operations coming to a complete halt. In early April, founders Ramakant Sharma and Anuj Srivastava decided to give up their annual salary while the leadership team wrote off their annual bonuses.

The company has decided to let go off 450 employee that make up for 15 percent of the organisation and said the decision to downsize was “the last resort for us”

“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. Livspace has a very transparent and authentic culture and now, more than ever, we wanted to stay true to our values and treat our impacted employees with utmost respect and help them as much as possible,” said Anuj Srivastava, co-founder and CEO at Livspace.

“We have extended their medical cover, have offered a monetary package to help them in these times, and we have also set up an outplacement cell.”

Affected employees will receive one month’s pay for serving notice period and health and medical expenses cover for another three months.

Ramakant Sharma, co-founder and COO at Livspace, said, “The impact of COVID on our business has been sudden and unpredictable. Hence, it was important that we become a leaner and more focused organization. As a result, we had to take this very unfortunate and difficult decision of parting ways with some of our employees.”

“While today is a disappointing day in our journey, I hope they have all enjoyed this journey both personally and professionally as much as I have; times will change and it will be our good fortune if we get to work together again.”

The company also setup an outplacement services programme. Livspace, in the statement, said the company is creating a dedicated outplacement team within which will help the impacted employees find another career opportunity.

First Published:May 20, 2020 9:11 PM IST