Groupon to Cut 25% of Workforce, Saving $20M Annually After $13M Charge
GRPN•Groupon will cut up to 400 jobs, or nearly 25% of its global workforce, in the coming months as part of a restructuring to make its platform AI-native. The company expects the layoffs to incur up to $13 million in charges while delivering more than $20 million in annual cost savings.
1. Job Cuts and Timeline
Groupon will eliminate up to 400 positions, representing nearly 25% of its global workforce, with layoffs to be implemented over the coming months as part of a broad restructuring.
2. Financial Impact of Layoffs
The company expects to incur up to $13 million in restructuring charges while generating more than $20 million in annual cost savings from reduced headcount.
3. AI-native Restructuring Strategy
CEO Dušan Šenkypl said the shift to an AI-native platform is essential to enhance service delivery for customers and merchants after falling short of last quarter’s expectations.
4. Market Reaction
Groupon shares have declined 27% over the past year and slipped 1% to $21.20 following the layoff announcement.
