First it was Motorola Mobility, now it’s DailyDeal. Google Inc(NASDAQ:GOOG) is laying off about 20 percent of the workforce in the Motorola unit. Now there is news that it has laid off a large number of employees from DailyDeal, the site it bought about a year ago for $114 million.
Venture Beat which reported the story said that most of the people laid off are in senior positions and engaged in functions such as sales and marketing.
A Google spokesman confirmed news that it will reduce the DailyDeal team and not renew certain contracts, VentureBeat said.
The deals site team, led by Graham Law and Matthew Scott Sucherman, will in future focus more on the integration of the platform with other Google products, in particular Android, Maps, Adwords, and Adwords Express. No further specific details were given, including the number of layoffs, it said.
As shown by Groupon, the daily deals revenue model is a difficult business to sustain for a long time and requires constant engagement and innovation.
Part of the problem is due to lack of merchant and customer confidence.
DailyDeal itself has largely stayed out of the headlines since its takeover by Google. The current restructuring, however, suggests it too may be failing to perform under a business-as-usual approach. Success would seem to depend on how well Google can integrate the service into its other advertising products, Venture Beat observed.