Daily deal sites.
Remember when that was all the rage and the future was going to be full of discounted everything for those who were willing?
Well, the daily deals are still flowing but the news today is of some reality becoming part of the picture. That reality speaks of expansion that may have been a bit too rapid and business experience that was definitely lacking.
On the first front rapid expansion by daily deal site Living Social is resulting in a rumored layoff of 400 people which is about 8% of the current work force. The Washington Business Journal reports
LivingSocial Inc. is slated to launch a major round of layoffs Thursday, with as many as 400 job cuts expected across its U.S. workforce, according to sources with knowledge of the daily deal giant’s plans.
Those cuts are expected to span a wide range of positions and markets, including in LivingSocial’s home turf of D.C., the sources said. It is not known how many will occur in D.C., where LivingSocial maintains six offices downtown.
A LivingSocial spokesman declined to comment.
This will be tough holiday news for many indeed.
As for Groupon’s latest concern? Will CEO Andrew Mason have that title for much longer? Business Insider tells us
Yesterday, three news stories appeared that reported essentially the same thing:
Board members at Groupon were discussing firing the company’s CEO, Andrew Mason.
These news stories did not cite each other. Rather, they cited “sources” close to the situation. (Kara Swisher at All Things D broke the story.* Then Bloomberg and the Wall Street Journal followed. Kara Swisher is a great reporter and may have flushed out the information, but sources confirmed it–not just to her but to the WSJ and Bloomberg*).
Author Henry Blodget goes on to roll out the pros and cons of whether Mason should be shown the door or allowed to remain on board.
Whether either of these happen or not the rumor mill has started so it will likely only get worse from here.
UPDATE: The board of Groupon has decided to keep Andrew Mason on as CEO as reported by Reuters.