Deals site LivingSocial cuts 400 jobs
NEW YORK — Online deals company LivingSocial is cutting 400 jobs worldwide, or about 9 percent of its workforce, as the deals market continues to face challenges.
LivingSocial spokesman Andrew Weinstein said on Thursday that all but a few dozen of the cuts are in the United States. The company's sales force had the highest number of cuts, while others are in customer service and editorial, the people paid to write up the deals.
LivingSocial said it is moving its customer service operations to Tucson from Washington, where it has its headquarters.
Weinstein said the job cuts came as part of a review of LivingSocial's global operations. The review was designed to make sure the company has the resources it needs to invest in areas that are “critical to the future,” such as marketing and mobile, he said.
Over the past year or so, online deals have gone from fad to a much-copied business model that's easy to set up but difficult to sustain. LivingSocial is one of the largest of the online deals companies, behind No. 1 Groupon Inc.
The job cuts came a day after Groupon CEO Andrew Mason said that “it would be weird” if his board was not discussing whether he was the right person for the job amid the company's poor stock performance.
His possible ouster was reported by AllThingsD and elsewhere.
Groupon's stock fell 2 cents to $4.40 in afternoon trading Thursday. The Chicago-based company went public in November 2011 at $20 per share. Earlier this month, Groupon reported a small loss for its third quarter. While its revenue grew by a third, it wasn't as high as Wall Street had hoped due largely to the weak economy in Europe.
Groupon's growth rate has steadily declined: In the fourth quarter of 2011, in its first earnings report as a public company, Groupon said its revenue nearly tripled. That fell to 89 percent in the first quarter of this year, 45 percent in the second quarter and 32 percent in the third.
Amazon.com Inc. has a small stake in LivingSocial, which is a privately held company.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Polamalu could be next in long line of Steelers greats given unceremonial exit
- Weather continues to cause crashes, public transportation delays
- Mother, baby found dead in Millvale apartment
- Over the falls — Cucumber Falls that is — go 3 kayakers in Ohiopyle
- Wolf reverses Corbett, says deal between Highmark, UPMC doesn’t limit continuity of care to very ill
- Rossi: Kang would benefit from less attention
- Pirates pitcher Locke fighting for 5th spot in starting rotation
- Penguins’ Lovejoy embracing defensive pairing with Pouliot
- Loose barges on Monongahela River highlight woes of winter’s end
- Alcoa may close or sell some aluminum plants to cut costs
- Experts: Clinton took dangerous path with email system