The decision to lay off was taken last week.
Earlier this month, leading co-working operator WeWork India also announced laying off nearly 100 employees.
Founded in 2015 by Ramakant Sharma and Anuj Srivastava, Livspace provides a three-sided marketplace and a design automation platform that connects homeowners, certified designers, and vendors.
Livspace uses data science-enabled algorithms to match homeowners with designers (based on style preferences, budget, scope of work and timelines).
“Due to the COVID-19 pandemic, like every business in the discretionary purchase sector, Livspace also has experienced a sudden and unpredictable impact on business,” the company said in a statement.
Earlier in April, its founders gave up their annual salary, the leadership team relinquished their annual bonuses and the company introduced success-based variable pay across the board, it said.
“But, we are definitely seeing a more unpredictable recovery path with the conditions still being very unstable, and, in response, we are steering the company in a more focused and leaner direction,” Livspace said.
The company decided to downsize its employees strength.
“About 15 percent of the organisation or 450 people have been impacted due to this decision, which, honestly, was the last resort for us,” Livspace said, adding that it was an extremely difficult decision.
Livspace said the company will provide health cover to these 450 employees and their families for the next three months.
“Every confirmed employee who has spent more than three months at Livspace will receive extra pay proportional to the duration of their service. As a result, people will be receiving anywhere between one to four weeks worth of extra pay,” the statement said.
This monetary package has been created above and beyond any contractual obligations, it added.
In line with contractual requirements, and in addition to the assistance package, employees will receive one month’s pay for serving the notice period or in lieu thereof.
Anuj Srivastava, Co-founder and CEO at Livspace, said, “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.”