LivingSocial Cuts 400 Staff Positions in Cost-Saving Move

http://www.bloomberg.com/news/2012-11-29/livingsocial-cuts-400-staff-positions-in-cost-saving-move.html

LivingSocial Inc., the second- biggest provider of online daily deals, is cutting about 400 staff across most of its divisions to reduce costs, according to a person with knowledge of the matter.

Eric Eichmann, president of the international business unit, is also leaving, said the person, who asked not to be named as the information is not public. Most of the affected staff will be informed today, the person said. The company has more than 4,500 employees, according to its website.

LivingSocial is using job cuts to help it cope with the slump in demand for online coupons that has resulted in losses and forced part owner Amazon.com Inc. (AMZN) to write down the value of its 29 percent stake. Groupon Inc. (GRPN), the leader in online coupons, is suffering too, and its board members today will consider changing management to help it do a better job stepping up growth, a person with knowledge of the matter said.

Amazon reported a third-quarter charge of $169 million related to its stake in LivingSocial. The online retailer had invested $175 million in the coupon service in 2010.