BuyWithMe Slashes Staff, Reportedly Looking for a Buyer

10/20/11Follow @jpruth

According to published reports by BetaBeat, TechCrunch and others, New York group-buying deals site BuyWithMe has laid off about 100 people today—about half of its staff—and is seeking a buyer.

BuyWithMe, which started in Boston and has offices there, is backed by Bain Capital Ventures and Matrix Partners. BuyWithMe’s CEO Jim Crowley issued the following statement regarding the shakeup at the two-year-old company: “BuyWithMe did have a significant reduction in staffing this week. We did this so the company is in the best position to continue to serve its merchants and members. As an organization we’re continuing to pursue our business and to support our customers throughout the country.”

Crowley was named CEO in January. The company has not provided any further details on the staff cuts or the purported search for a buyer. The reports by TechCrunch and BetaBeat said BuyWithMe could not raise some $100 million it sought for its next round of financing.

The layoffs come after BuyWithMe’s acquisition spree this year that included daily deals site TownHog in September, consumer loyalty rewards program operator Edhance in July, and daily deals site LocalTwist in March, which helped BuyWithMe expand into the Seattle market.

João-Pierre S. Ruth is the editor of Xconomy New York. He can be reached at jpruth@xconomy.com and followed on Twitter @jpruth. Follow @jpruth

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  • Bruce Kasrel

    OK, I know this is an obvious one but maybe if they did a Buy With Me Offer of 90% off Buy With Me stock, maybe a buyout firm with buy them!