Groupon to cut 10% of workforce, shedding 1,100 jobs
Groupon says it plans to slash 1,100 jobs this year, about 10 per cent of its entire staff.
The Chicago-based group buying website said in a blog post on Tuesday that most of the cuts come from its operations outside the U.S., which at one point included operations in more than 40 countries.
That footprint is shrinking, however. The company has already shuttered its operations in Greece and Turkey, but will now pull out of Morocco, Panama, the Philippines, Puerto Rico, Thailand, Taiwan and Uruguay.
"We saw that the investment required to bring our technology, tools and marketplace to every one of our 40 (plus) countries isn't commensurate with the return at this point," COO Rich Williams said. "Our teams have done great work to streamline our operations in these and other areas, and our global capabilities and strong regional service centres allow us to do more with less while still providing the high level of service our customers expect and trust."
Groupon Inc. said in a regulatory filing that the cuts will be essentially done by September 2016 and lead to pre-tax charges of up to $35 million US, the bulk of it in the current quarter.
Shares of Groupon fell 9 cents, or 2.2 per cent, to $4.08 at the close of trading. The stock has traded in the range of $3.53 and $8.43 in the past 52 weeks.