break-even

Layoffs Underway At Two Of New York’s Biggest Flash Sales Sites, Gilt Groupe and Lot18

Source: http://www.businessinsider.com/layoffs-gilt-groupe-lot18-2012-1


lot18

Last week BetaBeat’s Nitasha Tiku first reported impending layoffs at Gilt Groupe. We confirmed the rumor from a source who said 50-60 people would be let go in the next week or so.

Some of those cuts happened yesterday.  A source told Betabeat the experience was “super uncomfortable” and the “general atmosphere was terrifying.”

Gilt Groupe isn’t the only flash sales site that has been trimming some of its fat.  RueLaLa let go of many employees and Lot18, the one-year-old flash sales site for wine and gourmet food, also made cuts yesterday.

BetaBeat’s Adrianne Jeffries reported 15% of Lot18′s staff was let go after she spoke with co-founder Philip James. That comes out to about 14 people.

James called the layoffs “a natural part of the way a business grows and evolves.” James, like Gilt Groupe’s Kevin Ryan, indicated the layoffs were happening in places where the site was over-staffed, but said hiring would continue.  “We’re hiring heavily in areas that do make sense for us,” James told BetaBeat.

For Gilt Groupe, the layoffs seem to be a part of the plan to get to cash-flow break-even by Q2.  Best of luck to everyone at the companies.

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Sunday, January 22nd, 2012 news No Comments

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