LivingSocial Shuts New York Office, Lays Off 30

July 17, 2013

living-social-homeLivingSocial, the deals startup competing with the likes of Groupon, is closing its New York office and cutting its events division, effectively ending its own local events as the organization dials-in its business model. This, even after an infusion of $175 million by Amazon.

The New York cut, which terminated 30 positions within the company, comes a month after the organization closed its Seattle, Wash., office — though employees there were instead instructed to work from home and weren’t fired. The same can’t be said for its Washington D.C. offices, which saw 160 employees cut last November — a smaller part of a push to shed 400 jobs.

The move is the result of LivingSocial’s goal of “achieving profitability,” driving the company to also shed a few promotions it has pushed in the past, most prominently in the form of its curated excursions deals, “Adventures.” LivingSocial itself will no longer be creating “adventures” for customers, and will instead rely on its merchant partners to create and promote such events.

“While we have found great success in our bigger events — BeerFest, Sumo & Sushi and 5k Dance Party —that are designed to tour from city to city, we did not find a similar model for our local productions,” LivingSocial spokeswoman Sarah Parker wrote in a prepared statement, according to the Puget Sound Business Journal. “Therefore, we have made the decision to shift our focus from smaller, locally conceived events entirely to larger touring events. Because of this decision we have made some staffing changes. There were 30 full-time positions that were impacted. Importantly, this was not a cost-cutting effort, it was a business decision as we continue to focus on achieving profitability.”

But the company isn’t just shedding. As The Next Web reports, LivingSocial is looking to hire 50 employees for its customer-care call center in Tucson, Arizona. Those hired will join the company’s current 4,000 employee. Half of which, according to TNW reside in the U.S.

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