Last we heard, Gilt Groupe was sitting pretty with a $1 billion valuation and plenty of expansion plans. Now Gilt’s laid off 10% of its staff and closed six offices.
The company has confirmed it let 80-90 employees go, as well as shut down Gilt City offices in Philadelphia, Atlanta, Dallas, Houston, San Diego, and Seattle. Gilt City offices will remain in seven larger markets, while the smaller markets will now be run via a centralized sales team. Gilt City’s president Nate Richardson is leaving the company, albeit for another job — not as a result of the layoffs. Park & Bond head John Auerbach will also be exiting the company.
Earlier this month Gilt CEO Kevin Ryan told All Things D that while layoffs were imminent, he expected to hire even more employees than would be fired by the end of March. So, is Gilt in trouble? Probably not. It sounds like they got rid of employees who weren’t meeting expectations and made the Gilt City business more efficient. That said, we’re curious to see what will go down when the company goes public, which may very well happen late this year.