Last Wednesday, Betabeat broke the news of impending layoffs at Gilt Groupe. Later that morning, CEO Kevin Ryan downgraded the estimates we had heard, telling AllThingsD that the company intended to “selectively trim” about 50 people from its staff of 900 over the next couple months.
Tipsters have written into Betabeat that some of those layoffs are currently underway. “People leaving. Sadness. Super uncomfortable work environment,” said one source who wanted to remain anonymous, adding, “General atmosphere is terrifying.”
Gilt Groupe raised a $138 million series E round just last May and, in addition to launching new verticals, acquired BuyWithMe last October. Prior to the acquisition, BuyWithMe made its own layoffs, letting go of nearly half the staff in order to make the company more attractive to buyers. As Mr. Ryan indicated, some of the 20 to 25 BuyWithMe staffers that came over to Gilt as part of the deal may be among those let go as “they probably don’t need that many going forward now that the integration has been completed,” paraphrased AllThingsD.
Another vertical that Mr. Ryan indicated might experience cuts is Gilt Taste. Since reporting the layoffs at Gilt Groupe, a number of other players in the luxury good and daily deals space have let go of staffers, including RueLaLa, which cut 60 staffers, and Lot18, a Gilt Taste competitor.
Betabeat will updating the story as we learn more. If you have any information about the layoffs or restructuring, please email: firstname.lastname@example.org.