Groupon cuts another 500 employees in the second round of layoffs

Groupon laid off another 500 employees to cut costs, the company said in an SEC filing last week. This e-commerce company will cut 500 jobs in August 2022. This represents about 15% of the workforce at the time.

The new wave of layoffs will span the first two quarters of the year, the company said.

“On January 25, 2023, Groupon, Inc.’s board of directors announced that it will implement the second phase of our multi-phase restructuring plan, part of our comprehensive cost reduction plan announced in August 2022. This second phase includes the reduction of approximately 500 positions globally, with the majority of these reductions expected to be made by the end of the second quarter of 2023. ,” Groupon said in a filing.

The latest cuts affect nearly 20% of the employee base. The company said he had 2,500 employees as of late December.

Last week, several employees posted on LinkedIn about the layoffs. Kirsten Barber, the company’s chief people officer, said Groupon “had to part ways with some very talented teammates at NAM at all levels of leadership.”

TechCrunch sent Groupon several emails seeking more information about the layoffs prior to publishing the article, but the company did not respond as of this writing.

Groupon has faced several challenges over the years, from increased competition to a declining user base.In the first quarter of 2022, 22.1 million people purchased at least one offer on the site, according to Statista. , down sharply from 53.9 million in Q1 2021.

The company said in its SEC filing that the job cuts would save millions of dollars in annual costs.

“Salary measures under Phase 2 of the 2022 restructuring plan are estimated to lead to annual cost savings of approximately $70 million. We plan to implement non-payroll actions, including reductions in technology, software, and certain professional services costs. I’m here.

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