LivingSocial Cancels 2012 Bonuses for Employees
Groupon isn’t the only daily-deals company that’s having a bad day. Today it was revealed that LivingSocial has canceled performance bonuses for 2012 for all its employees, after the company failed to meet financial targets. Amazon’s 10-K filing showed that LivingSocial posted a net loss of $650 million in 2012.
The company’s employees are still eligible for merit-based salaries, according to spokesman Andrew Weinstein.
Employees were told about the canceled bonuses a day before the news about LivingSocial’s $110 million in funding, which created quite a stir.
The No. 2 daily-deals company is in the midst of a season of austerity. Back in late November, LivingSocial laid off about 400 employees to cut its costs. In December, the company decided to move its employees out of three buildings in Washington, D.C., to consolidate its workforce there. It also had plans to sublease some space in its Chinatown location in the nation’s capital, in addition to another space in that city.
