The daily deal coupon company, LivingSocial, is laying off 400 employees worldwide after a disappointing third quarter where it reported a net loss of $566 million.
Their daily deals are popular and edgy. You can find anything from yoga and skydiving to cooking classes and Botox treatments in their online service.
They grew rapidly and moved into trendy office spaces downtown, hailed as the "World's Coolest Offices" by INC Magazine.
D.C.'s Mayor and the City Council approved legislation this summer offering tax breaks if the company continued to expand and hire D.C. residents as employees. Those tax incentives are set for 2016, but are performance-based. If the company doesn't live up to its end of the bargain, they won't get the benefits.
In a statement, a company spokesman said, "These were difficult decisions, and we are working to minimize the impact on affected employees, but they were necessary to align our cost structure against our 2013 plans and help set the company on a path for long-term growth and profitability."