According to a filing with the SEC from last week, Groupon has laid off another 500 workers in an effort to reduce expenses. The e-commerce firm has already reduced employment by 500 people, or around 15%, in August of 2022.
The corporation has announced that the latest round of layoffs will occur over the first half of 2018.
Groupon, Inc.’s multi-phase restructuring plan, unveiled in August 2022, is part of the company’s overall cost-savings strategy, and its second phase was authorised by the Board of Directors on January 25, 2023. In a statement, Groupon said that the second phase will include the elimination of “about 500 employees worldwide,” with most of these layoffs happening by the end of the second quarter of 2023.
According to reports, the firm had 2,500 workers as of late December, thus the newest wave of cutbacks will affect approximately 20% of that number.
Several workers have commented on LinkedIn about being laid off during the last week. Groupon “had to split ways with numerous extremely outstanding colleagues in NAM, across all levels of leadership,” said Kirstin Barbor, the company’s chief people officer.
TechCrunch attempted to contact Groupon via email before to publication in order to get more information on the layoffs; but, the firm has not responded as of the writing.
Since its inception, Groupon has faced several obstacles, including rising competition and a declining customer base. While 53.9 million individuals made purchases on the site in the first quarter of 2014, Statista estimates that just 22.1 million people did so in the first quarter of 2022.
According to the SEC filing, the corporation will save millions of dollars annually as a result of the layoffs.
“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.
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