LivingSocial Announces Corporate Reorganization

Evolving business structure prompts changes in staffing

WASHINGTON, October 14, 2015 – LivingSocial today announced that it will reduce its total workforce by approximately 20 percent, impacting approximately 200 employees. The notifications are taking place immediately. Employees will be offered severance packages and outplacement support.

“This action is difficult, yet it allows us to operate more efficiently, while focusing our investments into accelerating progress toward our mission of becoming a leading experiences marketplace,” stated LivingSocial’s President and CEO Gautam Thakar.

As part of a multi-year journey toward becoming an experiences marketplace, LivingSocial launched Restaurants Plus in September, a pilot program in Atlanta that utilizes card linking technology and enables consumers to experience new restaurants and save money automatically with every swipe of their registered card. This month, the company also launched a second pilot, FastBook from LivingSocial in Austin, for the health and beauty market. FastBook offers an easy and instant way to book beauty appointments, and is the company’s first-ever booking tool.

Both programs represent LivingSocial’s venture into offering a frictionless consumer experience while transforming LivingSocial into an online destination for consumers to discover, share and gift experiences.

The reorganization announced today is consistent with the business goals of investing more in the experiences marketplace area, automation and technology, and an ongoing journey to optimize cost toward sustainable growth.

“At the start of the year we announced our new direction and I am encouraged by the early customer feedback from our new pilot programs and today’s action allows us to move forward in a more streamlined manner,” added Thakar.

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