LivingSocial Laying Off 400 People
Daily deals website LivingSocial will be laying off around 400 people tomorrow according to sources with Bizjournals. The cut positions will range across various areas across the U.S. including Washington D.C. LivingSocial has 6 offices in downtown D.C.
LivingSocial won a $32.5 million tax break from the D.C. Council if they promised to stay in Washington D.C. The legislation also asks the company to maintain and expand their 1,000 employee base in Washington D.C. The legislation asks for the company to move into a new headquarters of at least 200,000 square feet.
Since the company will have a smaller local staff, it would not make sense for them to open a large D.C. office. The tax credit is expected to take effect in 2016.
LivingSocial has raised over $800 million in funding and one of their largest shareholders is Amazon.com. They entered 2012 with 5,000 employees.
LivingSocial hit a net loss of $566 million in Q3 and $496 million has to do with massive write-downs of their acquisitions from 2011. Their revenue fell to $124 million in the three month period, which is down from $138 million in Q2.