Groupon has laid off another 500 employees in an attempt to cut costs, the company said in an SEC filing last week.. The e-commerce company had cut 500 jobs - almost 15% of its workforce then - earlier, in August 2022.
The company said this new set of layoffs will span the first two quarters of this year.
“On January 25, 2023, the Groupon, Inc. Board of Directors 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 a global reduction of approximately 500 positions globally, with the majority of these reductions occurring by the end of the second quarter of 2023," Groupon said in a filing.
The latest round of cuts will affect almost 20% of its workforce: the company had 2.500 employees at the end of December.
Kirstin Barbor, the company's chief people officer, said Groupon "had to part with several very talented teammates at NAM, at all levels of leadership."
Groupon has had a number of problems over the years, from increasing competition to declining user base. According to Statista, 22,1 million people bought at least one deal on the site in the first quarter of 2022, a sharp decline from 53,9 million in the first quarter.
The company claimed in the SEC filing that it will save millions in annual costs from downsizing.
“The payroll-related actions under the second phase of the 2022 Turnaround Plan are estimated to result in annualized cost savings of approximately $70,0 million. The company also intends to implement other non-payroll measures outlined in the 2022 Cost Savings Plan, including reducing the costs of technology, software, and certain professional services. These actions are expected to generate additional annualized cost savings of $30,0 million,” he noted.
In the last 12 months, Groupon shares have fallen more than 72%.
