Online deals company LivingSocial is cutting 400 jobs, as the deals market continues to face challenges. The second largest daily deals company confirmed it laid off roughly 10 percent of its workforce. The company’s sales force faced the highest number of cuts, while others are in customer service and editorial, the people paid to write up the deals. LivingSocial said it is moving its customer service operations to Tucson, Ariz., from Washington, where it has its headquarters. Over the past year or so, online deals have gone from fad to a much copied business model that’s easy to set up but difficult to sustain.

LivingSocial is using job cuts to help it cope with the slump in demand for online coupons at resulted in losses and forced part owner Amazon.com Inc to write down the value of its 29 percent stake. Amazon reported a third quarter charge of $169 million related to its stake in LivingSocial. The online retailer had invested $175 million in the coupon service in 2010. He company plans to hire staff in areas including mobile technology. Eric Eichmann, president of the international business unit, is also leaving, Weinstein said. Eichmann did not respond to a request for comment.