Gilt Groupe cuts 90 jobs

Gilt Groupe, the high-end online flash sales site has reportedly laid off 10 percent of its approximately 900 employees.  The cuts come as no surprise since Gilt openly admitted to the potential for layoffs almost two weeks ago. Initially sources said that those layoffs could affect as many as 170 employees but the total ended up being approximately 80 to 90 people and included some management staff. John Auerbach, head of Park & Bond, Gilt’s full priced men’s clothing site and Nathan Richardson, Gilt City president, will both be leaving the company, though Gilt says that Richardson is leaving of his own accord and not due to a layoff.

The company’s daily deal site, Gilt City, experienced most of the cutbacks. It was suggested by some that this may be a result of the stiff competition within the industry from sites like Groupon and LivingSocial.

The company will be closing its offices in Seattle, Dallas and Atlanta along with those obtained in its recent acquisition of BuyWithMe, including Philadelphia, Houston and San Diego. Gilt will continue to maintain offices in Boston, New York, Washington, D.C., Miami, Chicago, San Francisco and Los Angeles.

On Friday, an anonymous source told BetaBeat, “People leaving. Sadness. Super uncomfortable work environment. General atmosphere is terrifying.”  Gilt said they do not expect any more layoffs at this time.

Last May Gilt Group raised $138 million in series E funding led by Japan’s Softbank Group and Goldman Sachs Group and went on to acquire BuyWithMe in October.

Daily Deal Media’s CEO, Boyan Josic, has reached out to Gilt Groupe for comment and is awaiting a response. We will bring you updates as they become available.

Source: Daily Deal Media