Group buying website LivingSocial will lay off 400 people due to weak market

News and technology information Beijing time November 29, according to foreign media reports, as the group buying business market continues to weaken, the United States, the second largest group purchase website LivingSocial Inc. to cut 9% of employees, the number of layoffs will reach 400 people.

LivingSocial Inc, based in Washington, D.C., plans to announce a layoff plan for about 400 people in Thursday, local sources said. Shortly before, LivingSocial Inc. recruited 4,500 employees worldwide. LivingSocial has been expanding wildly in recent years, with its employees growing nearly 10 times-fold since the beginning of 2010.

After a year of initial public offerings by Groupon, the world's largest group buying site, consumers are increasingly interested in the way they spend their daily deals. LivingSocial said earlier this year that the company would shelve all listing plans because of a lesson from Groupon and Facebook.

Amazon, which owns 30% per cent of LivingSocial, said recently that LivingSocial's third-quarter revenue amounted to $124 million, with a net loss of $565 million trillion. This result has a big impact on Amazon, Amazon's third-quarter net loss of 274 million U.S. dollars, by the LivingSocial operating conditions directly caused by the loss amount to 169 million U.S. dollars, this is the home appliance business giant in nearly 9 years the first loss.

On the other hand, Groupon in Chicago is also struggling to maintain its business. The company lost 3 million dollars in the third quarter, although it failed to meet its expected profit target, but a year ago the company's net loss hit $54.2 million trillion. The company's share price has fallen by more than 80% since its initial public offering in November 2011.