LivingSocial Fires Employees, Backtracks and Asks Them to Stay a Week Longer

LivingSocial lays off 30, changing its mind a day later. The employees are still out of a job, just at a later date.

LivingSocial has plans to shut down its local-events business, so it sent notices to 30 staffers informing them they would be out of a job July 15. But realizing there were still events to put on, LivingSocial backtracked and told workers--the day after their scheduled end date--they would actually stay on board until July 24. Whoops.

As LivingSocial cuts Adventures, launched three years ago, a spokeswoman says the company is pursuing more lucrative events produced by third-party vendors like Madison Square Garden and Radio City Music Hall. "We have not achieved the goals we set for ourselves in locally produced adventures," she said. "Taking all that into consideration, we have made the decision to shift our focus from smaller locally conceived events entirely to larger touring events." This change will impact Adventures' nine markets and its employees (some staff, some part-time). The divisions will be phased out, though no specific dates were mentioned.

"The rare instances where certain staff had their end dates changed were the results of conversations with events team managers," the spokeswoman said. "These were mutually agreed extensions which occurred when the staffers expressed an interest in staying on longer to help phase out specific events. We were happy to have this type of cooperation from the city staffers who had consistently provided great events for LivingSocial and our customers."

Back in February, LivingSocial raised $110 million, much needed after the company reported a $650 million net loss in 2012. Last year, the company also cut 400 jobs, about 10% of its workforce, to refocus resources on mobile.

[Image: Flickr user Elvert Barnes]

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