Rumor has it that LivingSocial is planning to lay off up to 400 employees tomorrow, according to the Washington Business Journal.
Sources aware of the daily deals company's plans told the Journal that the layoffs will be in U.S. offices and will include various positions and markets. Currently, the company has around 4,500 employees, according to its website, so the layoffs would decrease its staff by nearly 10 percent.
LivingSocial has tried to branch into other markets this past year to make up for its financial woes, which equaled a net loss of $566 million in the third quarter. For example, in July it began offering merchandise as well as coupons. Besides bargains on restaurant meals and weekend trips, customers could also visit the site to buy discounted physical products such as beach games and towels.
If LivingSocial does indeed lay off 400 employees, it could cause some fallout with Amazon, which is a big investor in the company. Amazon's stake in LivingSocial is $175 million and when its shares tumbled in this year's third quarter, it partially blamed LivingSocial for its under-performance. Of Amazon's $274 million loss in the third quarter, it said that $169 million was related to LivingSocial's poor earnings.
A LivingSocial spokesperson told CNET that the company is declining to comment on the possible layoffs.