Groupon is cutting 1,100 jobs in the coming year, roughly 10 percent of its workforce.
Rich Williams, Groupon’s COO, said in a statement that the layoffs would be primarily be in the company’s “Deal Factory” and customer-service departments. He also noted in his post that Groupon’s returns aren’t doing so well in a number of countries, and that Groupon will be exiting Greece, Turkey, Morocco, Panama, The Philippines, Puerto Rico, Taiwan, Thailand and Uruguay. Groupon will still be operation in over 30 countries.
“We believe that in order for our geographic footprint to be an even bigger advantage, we need to focus our energy and dollars on fewer countries,” said chief operating officer Rich Williams. “So, we decided to exit a number of countries where the required investment and market potential don’t align.”
Groupon Inc says the cuts will be essentially done by September 2016 and lead to pre-tax charges of up to $US35 million ($A49 million), the bulk of it in the current quarter.
Groupon launched in 2008, offering its customers discounts at restaurants, spas, and retail stores. It is intended to be a way for small businesses to sell excess deals and inventory while bringing in new customers who may not have otherwise discovered these businesses. For a while, Groupon was the world's fastest-growing company.
..... Devashree Goenka