In an effort to reduce expenses, Groupon announced last week that it had fired another 500 employees. In August 2022, the e-commerce company had already eliminated 500 jobs, or about 15% of its total workforce.
This new round of layoffs, according to the company, will be spread out over the first two quarters of this year.
The second phase of Groupon, Inc.’s multi-phase restructuring plan, which is a component of the company’s comprehensive cost-savings plan, was approved by the board of directors of Groupon, Inc. on January 25, 2023. The majority of these reductions are anticipated to take place by the end of the second quarter of 2023, according to Groupon’s filing. “This second phase is expected to include an overall reduction of approximately 500 positions globally,” it said.
Nearly 20% of its workforce will be affected by the most recent round of layoffs; as of late December, the company reportedly employed 2,500 people.
Several employees have posted about the layoff on LinkedIn over the past week. Groupon “had to part ways with several very talented teammates in NAM, across all levels of leadership,” according to the company’s chief people officer Kirstin Barbor.
Before publishing, TechCrunch emailed Groupon several times to inquire further about the layoffs, but as of the time of writing, the company had not replied.
Over the years, Groupon has faced a number of difficulties, including rising competition and a declining user base. 22.1 million people bought at least one offer on the website in Q1 2022, down significantly from 53.9 million in Q1 20214, according to Statista.
According to the company’s SEC filing, the job cuts will result in annual cost savings of millions.
The payroll actions taken as part of the 2022 Restructuring Plan’s second phase are projected to save about $70.0 million annually in costs. The Company also intends to carry out additional non-payroll actions outlined in the 2022 Cost Savings Plan, such as lowering costs associated with professional services, technology, and software. Additional annualized cost savings of $30.0 million are anticipated as a result of these actions, it was noted.
The price of Groupon stock has decreased by more than 72% over the past year.