LivingSocial Is Laying Off More Than Half of Its Workers

Advertisement
By Andrea Peterson, The Washington Post | Updated: 17 March 2016 18:11 IST
LivingSocial will cut more than half of its workforce, according to an announcement saying that the company has completed it's "initial phase of turnaround."

The move is the latest sign of the decline of "daily deal" sites once thought of as the next big thing for online shopping. The sites typically offered users heavily discounted vouchers at local businesses in exchange for a cut of deal sales. But some business complained that the model wasn't actually a good deal for them - and consumers seemed to tire of the flood of emails sent by the services.

LivingSocial is laying off roughly 160 employees - about 85 them in Washington. It also plans to shut down its customer service call center in Tuscon, Arizona, and outsource those needs to another company - a move that will cost another 120 jobs and push total job losses up to around 280.

Advertisement

Once all the cuts are in place, LivingSocial will have about 200 employees, the company told The Washington Post.

"While it is never an easy decision to say goodbye to talented colleagues, we believe that we are now in a more stable position to invest in the next phase of our journey," LivingSocial's president and chief executive, Gautam Thakar, said in the press release. The company has "aggressively sought operational efficiencies through simplification, automation and outsourcing" with the goal of breaking even on its voucher business, he said.

Advertisement

The latest job cuts are part of a series of layoffs. The local company cut 400 jobs in 2014 and another 200 in October of last year. Competitor Groupon has also struggled: In September it announced it would lay off 1,100 people - roughly 10 percent of its workforce - and close operations in six countries.

LivingSocial plans to move away from the voucher business, but hopes to expand "card-linked" discounts, according to the press release. The company is trying out a program called Restaurant Plus in handful of cities that works by letting customers reserve a deal with payment card information on file, but not charging them for it until it's actually used.

Advertisement

© 2016 The Washington Post

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Apps, Internet, Layoffs, LivingSocial, Social
Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo F33 5G vs Realme 16 5G vs Nothing Phone 4a: Price, Features Compared
  1. NASA Observes Rare Sungrazer Comet Disintegration Near the Sun
  2. Kolaiseval Out on OTT: Know Everything About This Tamil Psychological Thriller Film Online
  3. Band Melam OTT Release Date Revealed: Know When and Where to Stream it Online
  4. LEGO Friends: The Next Chapter Season 4 Now Streaming on Netflix: What You Need to Know
  5. Small NASA Satellite Could Reveal How Lightning Impacts Space Weather
  6. Piece by Piece: Pharrell Williams’ LEGO Documentary Now Streaming on Netflix
  7. Ustaad Bhagat Singh OTT Release: When & Where to Watch Pawan Kalyan’s Telugu Film Online
  8. Battleground Season 2 Now on OTT: Know Where to Watch This Ultimate Fitness Reality Show Online
  9. Apne Paraye Out on OTT: Know Where to Watch This Hindi Dub of Bengali Drama Series
  10. Scientists Just Created the Largest 3D Map of the Universe Ever to Study Dark Energy
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.