Livspace lays off over 100 employees amid cost-cutting exercise: Report

• ByStartup Story Team     |    March 20, 2023

Livspace, a home renovation and interiors platform, has resorted to cost-cutting measures amid the ongoing funding slowdown by laying off employees. The Singapore-based startup communicated the job cuts via email to affected employees. The decision to lay off staff is aimed at extending the startup’s runway.

Livspace, the home renovation and interiors platform, has laid off over 100 employees, which accounts for 2% of its total workforce. The product, engineering, content, and marketing teams were the most affected by the layoffs, according to sources. The company’s objective behind this decision is to extend its runway and focus on efficient capital deployment. Despite the layoffs, the company has doubled its business in the past year and aims to achieve profitability in the coming year. Livspace is supported by prominent investors and plans to ensure long-term sustainable growth for its shareholders, customers, partners, and employees.

Livspace has stated that the redeployment of resources is a regular process in a company of its size and is reflective of normal adjustments and performance management parameters. While the company has reportedly not offered any severance package to the laid-off employees, it has provided an assistance package and medical insurance, according to Livspace. One source claimed that the company will only pay for the 15 days worked in the current month.

Livspace has stated that it is taking necessary measures to ensure a seamless transition for the impacted employees. The company has offered an assistance package, extended medical insurance, and outplacement services within its network wherever possible. In a statement, Livspace emphasized its commitment to investing in building a strong organizational culture and career development opportunities for its employees. The recent job cuts come nearly three years after Livspace laid off 450 employees during the first wave of the Covid-19 pandemic.

Livspace, which was founded in 2014 by Anuj Srivastava and Ramakant Sharma, is a platform that offers a curated marketplace for an end-to-end home design experience. The startup also provides software tools to help homeowners and designers design interiors. In 2020, Livspace became a unicorn after securing $180 million in a funding round led by KKR & Co, an American investment giant. The startup had announced that it would use the funding to expand globally.

Livspace has raised more than $400 million in multiple funding rounds, with investors such as Goldman Sachs, TPG Growth, and Bessemer Venture Partners backing the startup. However, in FY22, the company’s net loss increased 1.5 times to INR 645.2 crore, while expenses surged to INR 1,215 crore despite sales reaching INR 570 crore. Livspace’s rival, HomeLane, also laid off 30-40 employees earlier this month. The ongoing funding winter in the Indian startup ecosystem has reportedly led to the layoffs of around 23,000 employees at various Indian startups, including Livspace.

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