Mashable is reporting that daily deals site LivingSocial has plans to lay off 400 employees from its team in the U.S., citing the Washington Business Journal’s source “with knowledge of the daily deal giant’s plans.” The news comes just two years after LivingSocial raised over $800 million in funding, including $175 million from Amazon.
As recently as July, things seemed to be going swimmingly at LivingSocial. The D.C. Council awarded the company a $32.5 million tax credit for 2016 simply for agreeing to keep its headquarters in Washington, D.C. “The legislation calls on the company not only to maintain and expand its 1,000-employee base in the District, but to move into a new headquarters of at least 200,000 square feet,” explained Washington Business Journal. However, LivingSocial reported a third-quarter net loss of $566 million, with revenue of $124 million.
Do you think the LivingSocial layoffs will help the company rebound?
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(Photo credit: Mashable/LivingSocial)