Groupon Cuts Another 500 Employees in Second Round of Layoffs (TechCrunch)

Summary

A TechCrunch article reports that Groupon has laid off another 500 employees, according to an SEC filing. It says the company had cut 500 jobs, nearly 15% of its workforce then, in August 2022, and that the new layoffs will be spread across the first two quarters of this year. Quoting the filing, it says the Board of Directors approved on January 25, 2023 the second phase of a multi-phase restructuring plan, with an overall reduction of approximately 500 positions globally. The article quotes the filing as estimating approximately $70.0 million in annualized cost savings from payroll actions and an additional $30.0 million from other actions.

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Groupon cuts another 500 employees in second round of layoffs

Groupon has laid off another 500 employees in a bid to cut costs, the company said in an SEC filing last week. The e-commerce company had cut 500 jobs — nearly 15% of its workforce then — in August 2022.

The company said this new set of layoffs will be spread across 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 latest round of cuts will impact almost 20% of its employee base — the company reportedly had 2,500 employees in late December.

Over the last week, several employees posted about the layoff on LinkedIn . The company’s Chief People Officer Kristen Barbor said Groupon “had to part ways with several very talented teammates in NAM, across all levels of leadership.”

TechCrunch sent several emails to Groupon before publishing to get more info about the layoffs, but the company didn’t respond at the time of writing.

Groupon has had several challenges over the years, from increasing competition to dwindling userbase. According to Statista , 22.1 million people purchased at least one offer on the site in Q1 2022 — a sharp fall from 53.9 million in Q1 20214.

The company said in the SEC filing that it will save millions in annual costs because of the job cuts.

“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,” it noted.

In the last 12 months, Groupon stock has dipped more than 72%.

Topics

Commerce , e-commerce , Groupon , Layoffs

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Ivan covers global consumer tech developments at TechCrunch. He is based out of India and has previously worked at publications including Huffington Post and The Next Web.

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