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For when I need more than 140 characters to finish a thought on marketing, media or message.

LivingSocial starting to look a little antisocial

2 Comments

pitr_scissors_half-open_iconLivingSocial, a daily deals site based in D.C., is cutting 400 jobs after losing $566 million in the third quarter. (The Associated Press reports that is 9% of their workforce worldwide.)

What a shame. It seems like only yesterday only July when the D.C. Council handed the daily deal site a $33 million tax break to keep it in the District — as opposed to letting it migrate to more business-friendly Northern Virginia.

From a July WaPo story announcing the tax break:
 

Despite having yet to turn a profit, LivingSocial has quickly become one of the city’s largest private sector employers. Its staff has swelled from four to 5,000 since 2007, about 1,000 of which are based in the District.

 

Is it just me, or is it starting to smell a lot like the shenanigans that preceded the Dotcom Bust?

It’s not just me.

From the MoneyWatch story:

 

According to trade publisher Daily Deal Media, in the last six months of 2011 alone nearly 800 daily deal companies closed their doors.

 
Talk about done deals …

Author: Jacqui Barrineau

Jacqui Barrineau is a writer and editor who lives in the suburbs of Washington, D.C., with husband Trey, a Shetland Sheepdog, and two unhelpful-but-funny cats. Her work has appeared in "So to Speak" and "Calliope," and she's a regular contributor to the flash-fiction sites Paragraph Planet and Doorknobs & Bodypaint. Once upon a time, she was the audience engagement editor at USA Today. Now she does other fun things that involve advertising, marketing and social media. The views expressed here and in other outlets are hers, not her employers'. Outside of work, she's proud to serve on the Northern Virginia Community College Marketing Advisory Committee. As a committee member, she joins industry leaders in lending their knowledge and expertise to ensure the college's Marketing curriculum is relevant and responsive to the needs of the students and the surrounding business communities.

2 thoughts on “LivingSocial starting to look a little antisocial

  1. Sad for those 400. I wonder whether the four founders took huge holiday bonuses. And what about Deal Chicken?!?! Bean counters prematurely counting those chickens, too?

    • I was wondering about Deal Chicken, too. I read somewhere (can’t remember the publication, though) that other local media are having some bit of success with their daily deal programs, but I really don’t understand how. The small-business owners I follow on Twitter don’t seem to be keen on the daily deals, either.

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