In the search for profitability, New Delhi-based home decorator remodelling start-up Livspace has laid off nearly two per cent of its entire workforce. The layoffs impacted its product and technology teams the most as 36 employees lost their jobs. 

According to multiple media sources, the affected workers will receive their severance packages.

The layoffs came one year after the company stepped into the unicorn club after bagging $180 million in a funding round led by KKR & Co. 

This has been the second round of layoffs conducted by Livspace. Prior to this, it fired nearly 450 staff in the time during the first wave of the covid-19 pandemic. 

Addressing the latest development, Livspace said, “The business has more than doubled over the past year and we aim to turn profitable in the coming year. We have a strong balance sheet, are backed by marquee investors and are well-positioned to deliver long-term sustainable growth for the company. Our focus continues to be on the most efficient deployment of capital and resources to maximize value for our shareholders, customers, partners and employees.” 

“In a company of our size, we will, in the normal course of our operations, redeploy resources. This is organic and a reflection of normal adjustments and/or performance management parameters,” it added. 

The Indian start-up ecosystem has been going through a lot of difficulties. Coupled with the fund crunch and the fear of recession, the companies were seen to cut down their employee numbers since 2022. Last year, nearly 20,000 employees lost their jobs in the tech space. Highly-valued companies like Byju’s and Unacademy were seen trimming their bandwidth. This year has also not offered a different picture. According to a report by Inc42, 78 start-ups handed pink slips to around 23,000 employees, this year.