This real estate firm fires 450 employees

New Delhi: The layoffs are getting more and more common in the real estate industry as the prospects of the realty market are turning bleak. Now Bengaluru-based startup Livspace has fired 450 emplyees.

The downturn in business due to the corona virus-led lockdown and uncertain business conditions has prompted the company to lay off 15 percent of its staff, the company said in a statement. The deciosn to sack employees was taken last week.

"15 percent of the organisation or 450 people have been impacted due to this decision (of lay off), which, honestly, was the last resort for us," Livspace said.

The company said that it has been adversely impacted due to the corona virus pandemic. There has been “a sudden and unpredictable impact” on the company, Livspace said. 

Interestingly, company’s founders had given up salaries in April. The top management of the company had even given up annual bonuses. Livspace had also resorted to success-based variable pay across the board. 

Each of the confirmed staff of the company who has been in service for more than three months will get extra pay proportional to the time period of their service. Thus, employees will get 1-4 weeks worth of extra pay. This package has been put in place over and above any contractual obligations. 

As part of the contractual requirements, the sacked employees will get one month's salary for serving notice period or in lieu thereof.

The company was founded in 2015 by Anuj Srivastava and Ramakant Sharma. It provides a multi-dimensional marketplace and serves a design automation platform that connects owners of homes, designers and vendors.

The company makes use of algorithms to match homeowners with designers on the basis of style preferences and budget.

 

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