Facebook Launches Social Deals” To Challenge Groupon & LivingSocial. What are the targets we wish to hit?” mentioned a longtime manager who declined to be named as a result of his new company is fundraising. They started laying off workers — first 400 , then another 400 , 200 more, a hundred and sixty others — in a process that may drag on for years.\n\nBit by bit, LivingSocial closed or offered off the international businesses, many for much lower prices than the premium they’d paid to buy them. Groupon snapped it up for $260 million in 2013, a windfall that may prove essential to preserving LivingSocial afloat.\n\nAs executives replicate on LivingSocial’s fatal moment, all point to a security breach in April 2013. Hackers gained access to the account data of 50 million subscribers , and LivingSocial compelled all of them to reset their passwords. At that time we chose to focus more on shoring up the core business, and the problem with that decision was it was a business that was deteriorating pretty rapidly,” mentioned the former govt mentioned.\n\nGenerally the guy who built a business isn’t the same one who can tear it up, executives mentioned. Gautam Thakar, an eBay govt with e-commerce chops, stepped into the function Thakar mentioned in October 2014 that LivingSocial wasn’t a whole turnaround job — it had a stable foundation and priceless property, but needed more path.\n\nThakar developed a program that linked deals directly to credit cards and attempted other new business ventures, executives and traders mentioned, all while chopping workers and lowering expenses. Gautam played a tough hand nicely,” mentioned Jeremy Liew, a associate at Lightspeed Venture Partners and considered one of LivingSocial’s early traders.