Groupon Cuts Over 500 Staff, Plans To Focus 'Only On Mission-Critical Activities'

Groupon confirmed to TechCrunch that it's laid off more than 500 of its employees -- 15% of its 3,416-person headcount. It's also re-organizing the company to focus "only on mission-critical activities and leaning on more external support." From the report: "Our overall business performance is not at the levels we anticipated and we are taking decisive actions to improve our trajectory," CEO Kedar Deshpande said in a statement provided to TechCrunch. The chief executive says that the layoffs, as well as a reinvestment in marketing and initiatives that drive customer purchase frequency, will set the company up to generate positive cash flow by the end of 2022. In a letter to staff, Deshpande said that Groupon is reducing its North America sales teams to focus on "self-service merchant acquisition capabilities." It is also re-organizing the company to focus "only on mission-critical activities and leaning on more external support." "In addition, we are proposing to reduce cloud infrastructure and support functions as we wrap up cloud migrations." Groupon is also closing its Australia Goods business, more than a decade after launching there in the first place. Finally, Groupon said that it will "rationalize" its real estate footprint to be more in line with hybrid work. "Over the past few years, the number of Groupon shoppers has fallen sharply," adds TechCrunch. "According to Statista, 22.2 million visitors to the company's site purchased at least one offer in Q1 2022, down from nearly 54 million in Q4 2014." The report notes that these cuts aren't as large as the ones made in 2020 when Groupon said it would lay off or furlough 2,800 employees following the COVID-19 pandemic.

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