UPDATE: Gilt Groupe has not returned requests for clarification or comment, but responded via AllThingsD this morning.
CEO Kevin Ryan told the blog: “We are not closing down any businesses. We are not closing down Gilt Taste, and we aren’t merging Gilt City and Jetsetter.” Mr. Ryan also said, “In its fifth month of business, Park & Bond did more revenue than any other business in its fifth month,” although he did not say by what metric. He added that President John Auerbach is still employed at the company for now. But, he noted, there was a chance some of its top 15 executives may leave. (Chief Marketing Officer David Zucker left the company in July and Chief Product Officer Stefan Pepe left the company in June.)
Mr. Ryan did, however, tell AllThingsD that Gilt expects to “selectively trim” staff by about 50 over the next couple months, but claimed that by the end of March the number of employees would be larger than it is now. Gilt Groupe, he said, is on track for an IPO, possibly at the end of the fourth quarter, but mostly likely in 2013.
As for Gilt Taste, Mr. Ryan claimed that the site would need fewer staffers despite “doing great.”
Business Insider, where Mr. Ryan is chairman, has also confirmed impending layoffs of 50 to 60 people within the next week or so. According to Business Insider’s source, five to six percent of the company will let go across various departments in order to get cash-flow break-even by the second quarter of 2012.
Here is our original post:
Since Friday Betabeat has been hearing rumors about impending layoffs at Gilt Groupe. Late Tuesday night, a second source familiar with the company told us that the layoffs would happen on Wednesday and might be as high as 170 employees. We have reached out to Gilt Groupe for confirmation and will update the post as soon as we hear back.
The accounts vary, but both sources also point to restructuring within the company. One source said Gilt Taste, which hired former Gourmet editor-in-chief Ruth Reichl as editorial director last May, is expected to function at half its current workforce, with the remaining staffers funneled into other open positions in the company. Another source speculated that Gilt Taste was likely to be shut down.
Betabeat also heard that Gilt City and Jetsetter, which overlap in the high-end travel market, will merge. In October, Gilt City, which has a partnership deal with Google offers, acquired the daily deals site BuyWithMe, which itself suffered from big layoffs in the crowded deals space.