Changes Abound and Gilt Groupe? Rumor Had it.

The original story as reported by Betabeat.com has since been updated with a response from Gilt Groupe via AllThingsD this morning.

Betabeat reported early Wednesday morning that layoffs and restructuring were pending at Gilt as a result of acquired vertical websites not delivering as expected.  Betabeat reporters said they had been hearing rumors of layoffs since Tuesday night, and that “a second source familiar with the company” told them that layoffs would happen Wednesday night and could affect up to 170 employees.

The rumors varied, but all followed the central theme of restructuring at the company. Once source stated that Gilt Taste was to function at half its current work force and another said it would be shut down all together.

More rumors had to do with Gilt City and Jetsetter, which both cater to high-end travel, merging.  Gilt City has been no stranger to changes in business. When they acquired BuyWithMe in October, half of the staff had been let go due to volatility and competition in the daiy deals market.

Another rumor: “Layoffs have already begun”, naming Gilt vertical site Park & Bond president John Auerbach, who helped launch Gilt Man. Sources familiar with the offshoot, said that Gilt Man hadn’t been moving enough merchandise, and wasn’t what the company though it could be.

If the rumors ended up being true, Betabeat had a theory:

“One explanation for operational adjustments within company might be an attempt to trim the fat before Gilt Groupe’s much-speculated-about IPO. In May, the company picked up $138 million from Goldman Sachs, Draper Fisher Jurvetson, and others, along with a rumored $1 billion valuation.”

This morning, Gilt Groupe CEO Kevin Ryan told AllThingsD the following:

“We are not closing down any businesses. We are not closing down Gilt Taste, and we aren’t merging Gilt City and Jetsetter. In its fifth month of business, Park & Bond did more revenue than any other business in its fifth month”

He added that Gilt does expect to “selectively trim staff by about 50 over the next couple months” but by the end of March the number of employees would be larger than it is now. He also confirmed that Gilt is on track for an IPO, potentially in the 4^th quarter, but most likely in early 2013.

See the entire updated article here: BetaBeat