Groupon to Cut 400 Jobs, Save $25M for AI Infrastructure Buildout
GRPN•Groupon will cut 400 positions, about 23% of its 1,734-employee global workforce, by Q3 to transition into an AI-native company. The restructuring targets annual savings of $25 million, with up to 50% of the savings to be reinvested into AI infrastructure.
1. Layoff Plan and Workforce Reduction
Groupon plans to eliminate 400 jobs, representing nearly 23% of its global workforce, by the end of Q3 as part of a strategic shift toward AI-native operations.
2. Financial Impact and Savings Allocation
The restructuring is expected to generate about $25 million in annualized savings, with up to half of these funds earmarked for AI infrastructure investment to modernize workflows.
3. Departmental and Geographic Scope
Positions across sales, software engineering, customer service and human resources will be affected at the Chicago headquarters and in international offices, with specifics on regional cuts to be finalized.
4. AI-Driven Operational Efficiency
The company intends to deploy AI agents to handle routine tasks from lead sourcing to follow-up communication, aiming to increase operational efficiency tenfold and refocus employees on judgment and strategy.
