LivingSocial Fires Workers, Then Realizes It Still Needs Them

30 LivingSocial workers were laid off, only to be told they were being rehired.If you've ever been laid off, you've probably had the wish that your employer lives to regret the decision. Some employees at LivingSocial had that fantasy come true, when the daily deals website eliminated 30 workers' jobs on July 15, then the next day told them the company needed them to work longer, after all.

The 30 workers were part of the Washington, D.C., events department, known as "Adventures," according to the report by the Washington Business Journal. As a result, the company is closing its New York offices, and remaining staff members have been asked to work from home, as Entrepreneur magazine, a trade publication for small business owners, reported. A day after shutting down the entire department, management realized that it still had a handful of events scheduled, and some actual people were needed to make them happen. So the company informed the workers they'd be expected to work until July 24.

In an interview with AllThingsD, LivingSocial spokesperson Sara Parker acknowledged that the company may not having handled the layoffs flawlessly. "There's not a one-size-fits-all experience, but I'm not disputing the fact that there might have been some confusion," said Parker.

The decision to close the division qualifies as a serious disappointment; Adventures was launched in 2011 in 30 cities. But it may have been inevitable. In the last year, LivingSocial registered a net loss of $650 million.

More: 7 Part-Time Jobs That Pay Up To $40 An Hour


LivingSocial is no newbie to the layoff game. Last November, the company let go of 400 full-time workers, as the Washington Business Journal reported at the time. That round was the first in the history of the company, which was founded in 2007 as a Facebook application. After its founding, LivingSocial found a niche offering ticket deals for touring events like Cirque de Soleil and Tough Mudder. But LivingSocial may have bit off more than it could chew after early successes and undertook a "frenzied headcount expansion" to a total of about 5,000, in the words of the Washington Business Journal and needed to cut back.

Its transformation into a two-faced employer has left it seeking more help. Amid all the back and forth with the 30 full-timers, the company has also been trying its best to bring on part-time workers to make sure the remaining work gets completed, as AllThingsD reported.

And the company might not be done yet. Once all the local events are finally completed, dozens of part-time workers will also be laid off on October 1, according to the Entrepreneur report.

Layoffs, of course, are rarely handled in such a manner, but are on the rise throughout the economy. It's not even uncommon for companies that are profitable to undergo a round of layoffs, or for companies to make any formal announcement about the bloodletting. Instead, companies including Pfizer and Lockheed Martin are seeking to quietly remove workers in what's known as the "stealth layoff."


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ides315r

Good way to allow ticked-off ex-employees back into your business. Wouldn't be surprised if one or two of them brought a hidden time bomb with them on the last day of work.

July 24 2013 at 7:49 PM Report abuse rate up rate down Reply
George

Companies want their employees to be faithful but they aren't faithful to the employees and then wonder why they have such a turn over in staff. It used to be if you took care of the company they took care of you .... not anymore.

July 24 2013 at 2:52 PM Report abuse rate up rate down Reply
FSHNT21

Pretty much a standard business practice. Companies in "at will" states can and do fire entire staffs for a variety of reasons that can include union organizing, performance or just disgruntled workers.
When faced with the job loss, many employees get a harsh dose of reality, get back in line and get rehired. Their problem then becomes the loss of seniority, benefits and vacation as the employer is no longer obligated to the terms of their prior employment.

July 24 2013 at 9:03 AM Report abuse +2 rate up rate down Reply
rkeeeballs

No problem....I need a bonus to sign back on with you...I only work from home......burp...wanna beer ?

July 24 2013 at 8:39 AM Report abuse -1 rate up rate down Reply
ectullis

Happens all the time

July 24 2013 at 8:10 AM Report abuse rate up rate down Reply
ectullis

Don't go back they can't be trusted

July 23 2013 at 1:23 AM Report abuse +1 rate up rate down Reply
realrambo

Many years ago I was hired to break a Hotel Strike , they had a major banquet , I requested to be paid in advance very high wages , went to work then went Home sick and stayed there , we had a party with the Strikers , the working conditions were simply discussing , later in front of a Judge I provided an authentic medical certificate , and explained to the Judge in my entire life never seen any kitchen and facility in such condition , this is why I went Home sick , I never ever had called in sick before and had letters from former Employers to back it up , the Judge turned around and awarded me double my salary as punitive damage , telling the owner think twice before wasting the court time .....the heath dept had closed the joint before court.

July 23 2013 at 12:59 AM Report abuse rate up rate down Reply
mscellanus

Companies keep treating employees like trash and burning them up. They are real people and loyalty is a thing of the past..

July 22 2013 at 10:50 PM Report abuse +2 rate up rate down Reply
rkeeeballs

Boss handed in his resignation, please come back...20% raise , effective now !....yup.

July 22 2013 at 10:47 PM Report abuse rate up rate down Reply
bertnernie229

They all should have told the boss that for them to work the extra days it would cost the company $1,000.00 a day per person. If he did not agree then they should all leave. What is he or she going to do? Maybe in his or her next life he or she will not be a butt hole.

July 22 2013 at 8:14 PM Report abuse +3 rate up rate down Reply

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