Former BuyWithMe copywriter Peter D'Amato was one of nearly 120 people let go from the daily deals site last week.
He recounted the final days and told TechCrunch what went wrong.
According to D'Amato, rumors were swirling days before the layoffs. An email with names and titles of people being axed was accidentally sent to the development team instead of the executive team.
Then, on October 19, the company slashed more than half its staff from 200 to 85. D'Amato says his termination paper blamed "failure to identify sufficient funding to sustain the business' current employment levels."
But just a few weeks earlier, BuyWithMe had hired people and even acquired companies. So what went wrong?
Aside from being unable to raise another round of financing, D'Amato says the company's aggressive acquisitions caused it to fail. He also says merchants didn't make any money or generate valuable new business using BuyWithMe. BuyWithMe's layoffs could also have been in preparation to be acquired by Gilt Groupe.
To read D'Amato's story about the mess at BuyWithMe, head over to TechCrunch >>
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See Also:
- REVEALED: Google Paid $151 Million For Zagat
- Gilt Groupe Will Acquire What's Left Of BuyWithMe
- Surprise, Surprise: Groupon Wants To Raise Its IPO Price
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