Online deals firm LivingSocial has laid off about 9% of its employees worldwide, about 400 jobs of its global workforce of about 4,500 employees.
The move is as part of a restructuring plan in a bid to adapt the continuous challenges being faced by deals market.
LivingSocial spokesman Andrew Weinstein said that the layoff involves a few dozen in the US, with highest cuts involved in sales team in addition to other customer service and editorial, the people paid to write up the deals.
"We're going to be moving most of our remaining customer service operations - both merchant support and consumer support - from D.C. to Tucson over coming weeks, so the only impact will be increased hiring in the area, as we fill dozens of additional call-centerpositions in Tucson," Weinstein said.
The job cuts are aimed at building a long term plan for success and profitability and the cost structure required alignment with that plan, the firm said.
Earlier, LivingSocial said that it had planned to hire 180 people to staff the Tucson site.
Over the earlier year, online deals have become much-copied business model which can easily be set up, while difficult to sustain, the firm said.