Layoffs in Indian companies have become a common phenomenon in recent times. The COVID-19 pandemic and the resulting lockdown have pushed several industries to the brink. The retail industry, in particular, has been ravaged by the pandemic. In this blog, we will take a closer look at one of the latest layoffs in the retail industry by Livspace, a Bengaluru-based startup that was recently forced to lay off 450 employees.
Livspace is an online interior design platform that connects homeowners with professional designers. The company was founded in 2012 by Anuj Srivastava and Ramakant Sharma. Livspace’s primary focus is to transform the home design industry by leveraging technology and innovation. The startup has come a long way since its inception and has secured over $150 million in funding so far.
History, Funding, and Investors:
Livspace has a long list of investors, which includes some big names like Goldman Sachs, TPG Growth, and Jungle Ventures. The company has raised over $157 million till date and is already a major player in the Indian home design market. In 2019, Livspace raised $90 million in a Series D funding round, which was led by Kharis Capital and Venturi Partners.
How They Are Performing:
Livspace was performing well until the COVID-19 pandemic hit India. The pandemic has forced people to stay indoors, which has resulted in a slowdown in the retail industry. Livspace has not been immune to this slowdown and has been impacted by the pandemic, just like many other retailers. While the company was on a growth trajectory in 2019, with plans to expand into the Middle East market, the pandemic has put a roadblock in those plans.
Reasons for Layoffs:
Livspace was forced to lay off 450 employees in May 2020 due to the pandemic. The company cited the COVID-19 lockdown as the primary reason for the layoffs. The pandemic has made it difficult for Livspace to operate as usual, which has resulted in significant losses. In a statement released by Livspace, the company stated, “As a result of the unprecedented crisis, Livspace has had to make the difficult decision to lay off some of our workforce.”
Number of Employees Laid Off:
Livspace laid off 450 employees in May 2020, which amounts to around 15% of their total workforce. The layoffs impacted employees across different teams, including design, sales, marketing, and operations
Statement from Company Stakeholders:
The layoffs at Livspace have sparked concern among industry watchers and investors. Speaking on the layoffs, Anuj Srivastava, Co-founder and CEO of Livspace, stated, “These are very tough times, and we are doing everything we can to ensure the sustainability and future of our business. We are deeply saddened by the impact on our team and their families, but this is an unfortunate step that we had to take.”