LivingSocial, the DC-based online coupon company, is a bit closer to shuffling off that corporate mortal coil after another round of layoffs today that will see the company trim its payroll by 20 percent. The move will affect about 400 employees, the company says in a press release, about 100 of whom work in the District.
The latest LivingSocial purge is part of a “corporate reorganization” announced by chief executive officer Guatam Thakar, who took over the struggling company in August after the departure of founder (and Graham family in-law) Tim O’Shaughnessy.Aside from the local employees losing their jobs today, the reorganization also appears to significantly affect LivingSocial’s West Coast operations, with the shuttering of a 93-person office in Torrance, California.
“The actions today will create a more streamlined and efficient sales model that will enable the business to fund areas of growth—namely technology, data science and mobile,” Thakar says in the press release.
LivingSocial shifted away from the moribund “daily deals” business in October 2013 to focus on selling open-ended discounts on local goods and services. Its miseries continued in January when it closed its Penn Quarter showroom after a year in which it lost $183 million. The company’s balance sheet looks a bit more optimistic this year, according to financial disclosures by Amazon, which owns a 31 percent stake. LivingSocial showed a net yearly income of $131 million through September 30.
Thakar’s statement does not specify what LivingSocial’s latest reboot will look like, other than that it will be a “multi-year journey to build a sustainable business.”
This latest round of layoffs brings its total workforce down to 1,600 and 400 in DC. Once the darling of DC’s tech industry and city officials, LivingSocial will be on deadline in 2015 to make good on the obligations it agreed to in 2012 when it signed a $33 million tax rebate deal with Mayor Vince Gray. Considering the deal requires the company to have 2,000 local employees (with half being DC residents), build a 200,000-square-foot headquarters, and maintain profitablity by the end of the current fiscal year, it seems highly likely DC taxpayers will get to keep their money.
Benjamin Freed joined Washingtonian in August 2013 and covers politics, business, and media. He was previously the editor of DCist and has also written for Washington City Paper, the New York Times, the New Republic, Slate, and BuzzFeed. He lives in Adams Morgan.
LivingSocial Cuts Another 400 Employees, Including 100 in DC
More bad news for the former darling of DC's tech industry.
LivingSocial, the DC-based online coupon company, is a bit closer to shuffling off that corporate mortal coil after another round of layoffs today that will see the company trim its payroll by 20 percent. The move will affect about 400 employees, the company says in a press release, about 100 of whom work in the District.
The latest LivingSocial purge is part of a “corporate reorganization” announced by chief executive officer Guatam Thakar, who took over the struggling company in August after the departure of founder (and Graham family in-law) Tim O’Shaughnessy. Aside from the local employees losing their jobs today, the reorganization also appears to significantly affect LivingSocial’s West Coast operations, with the shuttering of a 93-person office in Torrance, California.
“The actions today will create a more streamlined and efficient sales model that will enable the business to fund areas of growth—namely technology, data science and mobile,” Thakar says in the press release.
LivingSocial shifted away from the moribund “daily deals” business in October 2013 to focus on selling open-ended discounts on local goods and services. Its miseries continued in January when it closed its Penn Quarter showroom after a year in which it lost $183 million. The company’s balance sheet looks a bit more optimistic this year, according to financial disclosures by Amazon, which owns a 31 percent stake. LivingSocial showed a net yearly income of $131 million through September 30.
Thakar’s statement does not specify what LivingSocial’s latest reboot will look like, other than that it will be a “multi-year journey to build a sustainable business.”
This latest round of layoffs brings its total workforce down to 1,600 and 400 in DC. Once the darling of DC’s tech industry and city officials, LivingSocial will be on deadline in 2015 to make good on the obligations it agreed to in 2012 when it signed a $33 million tax rebate deal with Mayor Vince Gray. Considering the deal requires the company to have 2,000 local employees (with half being DC residents), build a 200,000-square-foot headquarters, and maintain profitablity by the end of the current fiscal year, it seems highly likely DC taxpayers will get to keep their money.
Find Benjamin Freed on Twitter at @brfreed.
Benjamin Freed joined Washingtonian in August 2013 and covers politics, business, and media. He was previously the editor of DCist and has also written for Washington City Paper, the New York Times, the New Republic, Slate, and BuzzFeed. He lives in Adams Morgan.
Most Popular in News & Politics
Every Bus Line in DC Is Changing This Weekend. Here’s What to Know.
8 Takeaways From Usha Vance’s Interview With Meghan McCain
Yet Another Anti-Trump Statue Has Shown Up on the National Mall
Another Mysterious Anti-Trump Statue Has Appeared on the National Mall
A Cult Classic of Cannabis Brands Is Making Its DC Debut
Washingtonian Magazine
July Issue: The "Best Of" Issue
View IssueSubscribe
Follow Us on Social
Follow Us on Social
Related
How Would a New DC Stadium Compare to the Last One?
The Culture of Lacrosse Is More Complex Than People Think
Did Television Begin in Dupont Circle?
Kings Dominion’s Wild New Coaster Takes Flight in Virginia
More from News & Politics
Speaker Johnson’s Megabill Prayers Likely to Be Answered Before Holiday Weekend, Wrongly Deported Maryland Man Faced Abuse in El Salvador Prison, and We Found Some Yummy Nepalese Food
Pardoned J6er Will Join Ed Martin’s Justice Department Office, Trump Outlines Hypothetical Alligator Escape Plan, and We Have Fireworks Show Recommendations
The “World’s Largest Outdoor Museum” Is Coming to DC. Here’s a Preview.
A Cult Classic of Cannabis Brands Is Making Its DC Debut
The Commanders Wine and Dine DC Council Members; GOP Senator Suggests Tax Language Was “Airdropped” Into Spending Bill; and Trump Wants DOGE to Investigate Musk
100 Reasons to Love DC Right Now
How DC’s Attorney General Got So Good at Double Dutch
DC Council Ponders New Way to Expel Trayon White, the GOP’s Budget Bill Advances, and We Found You Some Tacos With Ethiopian Flair