Yesterday we got wind of possible LivingSocial layoffs and today we can confirm that the news is true.
LivingSocial is firing 400 employees today, reports CNNMoney, which is about 9% of its global workforce.
The job cuts are mostly spread across the U.S. with a few layoffs abroad. The layoffs affect sales, editorial, and customer service departments.
The layoffs come at a time when the daily deal world is in trouble. Earlier this month, Groupon fired approximately 650 employees, and Groupon's board is considering right now whether or not it should fire CEO Andrew Mason.
LivingSocial told CNNMoney that it is moving much of its customer service from its headquarters in D.C. to Tuscon, "so some job openings will be available in that area. Sales and editorial, however, have simply been "streamlined."
"We've gone through two years of hypergrowth, from roughly 450 employees to 4,500," Andrew Weinstein, a company spokesperson, said. "The space has gone through such growth that we needed to catch our breath," LivingSocial says.
LivingSocial denied that these layoffs suggest that the daily deals business is doomed. "We think this actually puts us on the right path for long term growth and profitability," Weinstein said.
We've reached out to LivingSocial for comment and will update this story when we hear back.
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