The Groupon company has recently informed the United States Securities and Exchange Commission (SEC) that it has decided to lay off 500 more workers in order to reduce its costs. This move is part of an ongoing strategy by Groupon to streamline its operations and improve its long-term profitability.
As of August 2022, the e-commerce company had cut 500 jobs, representing nearly 15% of its workforce at the time.
The company said that this new wave of layoffs will extend throughout the first two quarters of 2023.
“On January 25, 2023, the Groupon, Inc. Board of Directors 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. ″, Groupon said in the presentation.
“This second phase is expected to include an overall reduction of approximately 500 positions worldwide, with the majority of these reductions expected to occur by the end of the second quarter of 2023,” the company added.
The latest round of cuts will affect almost 20% of its employee base. The company had 2,500 employees at the end of December.
Groupon’s situation has been marked by various obstacles over time, including increased competition and a decline in the number of users. According to TechCrunch, only 22.1 million people purchased at least one offer on the site in the first quarter of 2022, compared to 53.9 million in the first quarter of 2014.
With this second round of layoffs, Groupon is looking to save $70 million in costs.
In addition, it aims to implement other measures to reduce expenses in technology, software and professional services, with which it plans to save an additional $30 million.
In the last 12 months, Groupon shares have fallen more than 72%.
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