Gilt Groupe’s 900-some employees can rest easy, for now. In response to questions from Betabeat, the company confirmed this afternoon that the recent spate of layoffs is over. CEO Kevin Ryan initially estimated that about 50 people would be let go, however, the total number of layoffs across Gilt Groupe’s businesses “ended at 80-90.”
In a statement, the company said, “We don’t foresee additional layoffs at this time.”
Betabeat heard word Friday that part of the restructuring would involved shutting down certain markets for Gilt City, the company’s location-based deals service that offers discounts on luxury events and experiences. In the statement, Gilt Groupe confirmed that it will be closing its offices in six secondary cities “effective immediately,” namely San Diego, Houston, Philadelphia, Seattle, Dallas, and Atlanta. “We have not been as successful in smaller markets and the resources they require take away from growing our core business,” the company said.
Prior to this move, Gilt City operated in thirteen markets, so this represents a significant reduction. Going forward, Gilt Groupe said it will be “servicing those smaller markets through a centralized sales force.”