- Groupon has made several lay offs in past few years and now Groupon lays off 500 employees in second round.
- There are little expectations after Kedar Deshpande took over with “turnaround strategy”.
E-commerce company Groupon laid off almost 500 employees to cut costs as revealed by them in an SEC filing last week. Groupon has cut nearly 15% workforce in August 2022 last year.
The company says that this new layoffs shall 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 company had 2500 employees in late December and that the new cut offs will impact almost 20% of the employees base.
Several employees of the company posted about the layoffs on LinkedIn last week. Kristin Barbor companies Chief People Officer said “had to part ways with several very talented teammates in NAM, across all levels of leadership.”
Groupon SEC filing details:
Groupon has not yet addressed to the emails published to get more information about the layoffs. It faced several challenges over the years in terms of competition and user base. The records say that 22.1 million people have purchased at least one offer on the site in Q1 2022 which is sharp fall from 53.9 in Q1 20214. It is being said that the company will save millions in annual costs because of the job cuts as per it’s report in SEC filing.
“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.
Groupon’s headcount by the end of third quarter was reported to be 3077. Before the Chicago’s tech start up phase Groupon had around 11,000 employees back in 2012.
After the former CEO of Zappos, Kedar Deshpande took on the helm of Groupon, it made turnaround strategy in 2021. Just last month Kedar posted about the increase in purchase frequency and customers experience at Groupon.
Despite of all this Groupon has still not commented about the layoffs and till when they will continue.
