Angie’s List Layoffs in June 2017 Axing about 70 Sales Positions

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Angie’s List Is Cutting Sales Positions

An American Web site for customer reviews of local businesses and contractors, Angie’s List Inc, has announced that it will be laying off about 70 employees from its sales department. All of the sales staff being sent home are based in Indianapolis, where the company is headquartered.

Vice President of Investor Relations Leslie Arena says the move is part of the company’s “right-sizing” efforts as it stays focused on achieving efficiencies. Angie’s List has consolidated its product and technology departments, and has automated part of its workflow process, all of which has partly led to the layoffs.

The latest round of layoffs has come less than a month after the company was acquired by IAC/InterActiveCorp, which is the parent company of rival reviews Web site, HomeAdvisor, Inc. Many expected that there would be job cuts after the acquisition was complete.

Angie’s List welcomed the acquisition offer after struggling with declining revenue, despite dramatically changing its business model. The company’s financial troubles have been a result of its declining paid membership base.


Customer Review Website Facing Competition from Google

The reviews Web site has been struggling to stay competitive in a cutthroat industry that is increasingly being dominated by the likes of Google (owned by Alphabet Inc) and Facebook Inc.

The company shifted its premium membership business model to a freebie service in order to attract more traffic. Angie’s List then started losing paid premium members after it introduced the free membership option in July 2016. The move was targeted at achieving a higher membership base, yet revenue has continued to dip, despite gaining more subscribers.

Prior to the latest round of layoffs, Angie’s List cut about 150 jobs in November 2016. Those layoffs were announced after the company reported a loss of $7.5 million in its third quarter, which was double the company’s loss for the same period in 2015. Following the layoffs, the company reported that it was on track to achieve $15.0 million to $20.0 million in annual savings.

Before the layoffs in 2016, the company had about 1,800 employees. The company is now reported to have a workforce of more than 1,500.


Angie’s List lays off sales staff amid declining revenue,” USA Today, June 2, 2017.
Angie’s List to be acquired by HomeAdvisor parent company,” USA Today, May 2, 2017.
Angie’s List lays off about 150, source says,” Indy Star, November 3, 2016.