News : LivingSocial Cuts One-fifth of its Workforce
Washington, DC, USA, Oct 14 2015 -- LivingSocial Inc. said it is laying off about 200 employees — 20 percent of its overall workforce — effective immediately.
That includes about 30 people from LivingSocial’s D.C. headquarters, leaving just more than 300 employees working there. The company is also cutting about 50 of 180 employees at its Tucson, Arizona, office and call center. The remainder work in small offices or their homes nationally.
The layoffs are limited to its North America operations, with LivingSocial's U.K. and Ireland divisions spared any cuts, according to the company.
LivingSocial, which is privately held, declined to say how much the layoffs would save. The overall workforce will drop from about 1,000 to about 800 employees.
The layoffs are part of what LivingSocial says is a reorganization away from the daily deals concept and toward its goal of becoming an "experiences marketplace" that removes the friction from everyday transactions. The company is also shifting from sales people working remotely across the country to a sales force working out of its main offices, LivingSocial spokeswoman Sara Parker said.
"The cuts are across the board," Parker said. "This is really about allocating resources toward the right priorities. We have some pilots that are new to market, but we need more progress more quickly."
Parker said LivingSocial plans no more layoffs or reorganizations at this time. In 2012 LivingSocial laid off 400 employees, with another 400 layoffs coming last year.
The emphasis on new programs is part of LivingSocial’s shift toward new products and services that CEO Gautam Thakar said is the future of the company. He said in a statement the layoffs will help streamline the company as it continues to develop more of those new products.
"This action is difficult, yet it allows us to operate more efficiently, while focusing our investments into accelerating progress toward our mission of becoming a leading experiences marketplace," Thakar said.
Posted by Veronica Silva Cusi, news correspondent
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LivingSocial is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Based in Washington, D.C., LivingSocial now has more than 70 million members around the world.
Published: Friday, October 16, 2015