Groupon has decided to lay off 500 more workers in order to reduce costs. The company is looking to save $70 million dollars with this action.
Groupon has recently informed the U.S. Securities and Exchange Commission (SEC) that it has decided to lay off 500 more workers in order to reduce costs. This move is part of an ongoing strategy by Groupon to optimize its operations and improve its long-term profitability.
In August 2022, the e-commerce company had eliminated 500 jobs, representing nearly 15% of its workforce at the time.
The company said this new wave of layoffs will be spread throughout the first two quarters of this 2023.
“On January 25, 2023, the Board of Directors of Groupon, Inc. 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″, Groupon said in the filing.
“This second phase is expected to include an overall reduction of approximately 500 positions worldwide, with the majority of these reductions expected to occur by the end of the second quarter of 2023,” the company added.
The latest round of cuts will affect nearly 20% of its employee base. The company had 2,500 employees at the end of December.
Groupon’s situation has been marked by various obstacles over time, including increasing competition and a declining number of users. According to TechCrunch, only 22.1 million people purchased at least one deal on the site in the first quarter of 2022, down from 53.9 million recorded in the first quarter of 2014.
With this second round of layoffs, Groupon is looking to save $70 million in costs.
In addition, it aims to implement other measures to reduce spending on technology, software and professional services, which it plans to save an additional $30 million.
Over the past 12 months, Groupon’s stock has fallen more than 72%.