There is trouble in the daily-deal world.
The layoffs come at a time when the entire daily-deal world is struggling. LivingSocial's layoffs prove that this is not an isolated event. Earlier this month, Groupon eliminated 648 jobs prior to announcing quarterly revenues that missed expectations. The sector-wide instability even has Groupon's board considering whether to keep founder Andrew Mason on as CEO .
We first got word of this news via PandoDaily, whose editor, Sarah Lacy, tweeted:November 28, 2012
We reached out to the company but they declined to comment at this time.
Washington Business Journal says that the cuts are expected to come across a wide range of positions and markets, including its home base in D.C. LivingSocial maintains six offices in the nations capital.
The layoffs could be affected by LivingSocial net loss of $566 million in the third quarter. $496 million of that loss stems from a massive writedown of some of its acquisitions from 2011, the Washington Business Journal says. LivingSocial's revenue fell to $124 million in the three-month period, down from $138 million in the second quarter.
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