More Bad News From Daily-Deals World

LivingSocial to lay off 400, Grouponers may want CEO ousted

By Liam Carnahan,  Newser Staff

Posted Nov 29, 2012 10:19 AM CST

(Newser) – Things still aren't so cheery in daily-deals land, with two of the biggest players in the space—Groupon and LivingSocial—taking a hit in the press after taking a hit in the wallet. The latest:

  • LivingSocial will announce today that it's cutting almost 9% of its staff, sources tell the Washington Business Journal. That's about 400 jobs. The news comes on the heels of a depressing Q3, in which the company reported a $565 million loss and saw revenue fall by $14 million to $124 million.

  • And in the case of Groupon, the chopping block could be placed at the CEO's door. With its stock having crashed 80% since its IPO, the board may be looking to boot Andrew Mason. It meets today, reports the Wall Street Journal.
  • Mason appeared at a Business Insider conference yesterday, and one soundbite is getting a lot of play, per the Los Angeles Times: "It would be weird [if the board didn't question my leadership]. ... It would be more noteworthy if the board wasn’t discussing whether I’m the right guy for the job. If I ever thought I wasn't the right guy for the job, I'd be the first person to fire myself."
  • Investors apparently liked the idea of Mason giving himself a pink slip, writes Adam Clark Estes for the Atlantic Wire, because the company's stock closed up 12% at $4.42. "That's still a long ways from $28, but the price is certainly not as close to 0 as it was before Mason ostensibly offered to show himself the door."

This Oct. 21, 2011 file photo shows the Groupon logo inside the online coupon company's offices, in Chicago.
This Oct. 21, 2011 file photo shows the Groupon logo inside the online coupon company's offices, in Chicago.   (AP Photo/Charles Rex Arbogast, File)
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