LivingSocial to Begin Laying off as Many as 400 U.S. Employees This Week
LivingSocial is set to begin a major round of layoffs Thursday. As many as 400 U.S. jobs are in the line of fire, according to sources. The job cuts are expected to span a variety of positions and markets, including the company’s home town of Washington, D.C., where it has six offices and at least 4,500 employees. This could complicate LivingSocial’s tax-break program, which is worth $32.5 million and requires the company to increase its workforce in Washington, D.C., in order to receive the full benefit. The pending layoffs come as no surprise. They reflect the company’s public struggle to get things right financially, as it posted a net loss of $566 million in the third quarter of 2012. This would be the first major round of U.S. layoffs for LivingSocial. It also comes shortly after some turmoil in the aftermath of a Washington City Paper article and the associated comments, which got the attention and response of CEO Tim O’Shaughnessy. (Washington Business Journal, Washington City Paper)
