Groupon cuts another 500 employees in the second round of layoffs.
In an SEC filing from last week, Groupon revealed that it has laid off an additional 500 employees in an effort to reduce expenses. In August of 2022, the e-commerce company terminated 500 positions or approximately 15% of its employees at the time.
Groupon cuts another 500 employees in the second round of layoffs
Groupon is a global e-commerce marketplace connecting millions of subscribers with local merchants by offering activities, travel, goods, and services in more than 15 countries. Groupon provides daily deals through a variety of coupon offerings and provides subscribers with the ability to purchase and redeem those coupons on Groupon’s website or mobile app.
According to the corporation, this latest round of layoffs will happen throughout the course of the first two quarters of this year.
“On January 25, 2023, the Board of Directors of Groupon, Inc. approved the second phase of the Company’s multi-phase restructuring plan, which is part of the Company’s comprehensive cost savings plan, announced in August 2022. This second phase is expected to include an overall reduction of approximately 500 positions globally, with the majority of these reductions expected to occur by the end of the second quarter of 2023,” Groupon said in a filing.
The new round of layoffs will affect over 20% of the company’s workforce and as of late December 2022, the company reportedly had employed 2,500 people.
Several employees have posted about the layoff on LinkedIn during the past week. The Chief People Officer of the firm, Kirstin Barbor, stated that Groupon “had to part ways with several very talented teammates in NAM, across all levels of leadership.”
Groupon has faced numerous obstacles over the years, including intensifying competition and a declining customer base. According to Statista, 22.1 million users purchased at least one offer on the site in the first quarter of 2022, which is a significant decrease from the 53.9 million who did so in the first quarter of 2014.
Groupon stock has declined by about 72% during the past year.
The company stated in its SEC filing that the employment reduction will result in annual cost savings in the millions.
it noted. that “The payroll actions under the second phase of the 2022 Restructuring Plan are estimated to result in approximately $70.0 million in annualized cost savings. The Company also intends to implement other non-payroll actions outlined within the 2022 Cost Savings Plan, including reducing technology, software and certain professional services costs. These actions are expected to create an additional $30.0 million in annualized cost savings,”