Groupon laid off another 500 employees to cut costs, the company said in an SEC filing last week. This e-commerce company was cutting his 500 people (almost 15% of its workforce at the time) in August 2022.
The new wave of layoffs will span the first two quarters of the year, the company said.
“On January 25, 2023, the Board of Directors of Groupon, Inc. 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. We have approved this second phase, which is expected to result in the majority of these reductions by the end of the second quarter of 2023.
The latest cuts affect nearly 20% of the employee base. The company reportedly had 2,500 employees in late December.
Last week, several employees posted on LinkedIn about the layoffs. Kirstin Barbor, the company’s chief of her people and her officer, said Groupon “had to part ways with some very talented teammates at NAM across all levels of leadership.”
TechCrunch sent several emails to Groupon seeking more information about the layoffs prior to publishing the article, but the company did not respond at the time of 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.
“It is estimated that the payroll measures in Phase 2 of the 2022 restructuring plan will save approximately $70 million annually. We plan to take other non-payroll actions outlined in our cost reduction plan for 2022, including reductions, which we anticipate will result in an additional $30 million in annual cost savings from these actions.”
