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LivingSocial CEO Tim O’Shaughnessy announced wide-ranging layoffs in an email to the company’s employees today, confirming reports that the daily deals giant was planning to cut its staff.
In his email, which is in full below, O’Shaughnessy describes the cuts as the result of a “top-to-bottom” review of the company to prepare its finances for 2013. Around 400 LivingSocial employees, including about 160 in Washington, will lose their jobs, according to the Washington Business Journal.
If a LivingSocial employee is on the cut list, they’ll know soon. “Before the end of the day, business managers across the company will be notifying some members of their teams that their positions are being eliminated,” O’Shaughnessy writes.
Follow City Desk for updates as the LivingSocial layoffs continues, and read “Living LivingSocial” for a look at the company’s corporate culture.
Disclosure: Washington City Paper also sells daily deals.
Over the past couple of months, the leadership team has been conducting a top-to-bottom review of all our operations, products, and opportunities, so we can enter 2013 with a growth strategy and cost structure that is aligned for success in the coming year and beyond. The result of that review is a plan that will help us continue and in some cases increase our investments in vital areas like marketing, sales, and product development, but it also forces us to make some tough choices, including substantial cuts to non-employee related expenditures, such as outside contractors and professional services, and – unfortunately – a reduction in the number of positions in many areas of the company.
Before the end of the day, business managers across the company will be notifying some members of their teams that their positions are being eliminated. We intend to provide every employee with the respect and appreciation that they deserve as we work through this decision.
I know you will have a lot of questions. The senior leadership team and your manager will be sharing additional information with you later today, tomorrow, and in the coming days and in coming weeks.
These decisions are never easy. I cannot thank all of you enough for the hard work, dedication, energy, and passion that you have put into our work together. Thank you all.
Photo by Darrow Montgomery