San Francisco, Aug 9 : The Chicago-based e-commerce platform Groupon has announced that it has cut over 500 of its employees, which is 15% of its 3,416 employees.The company plans to cut costs.The cut in staffing affected workers in teams that include sales, merchant development recruitment, engineering marketing and product development, TechCrunch reported on late Monday.
“Our overall performance isn’t quite at the levels we expected and we’re taking proactive steps to improve our business performance,” CEO Kedar Deshpande stated in an email on the company’s website.
The chief executive claims that the reductions in staff, as as the reinvestment in marketing initiatives and other activities to increase the purchase frequency of customers will set the business up to create positive cash flow at the end of 2022.
In a letter to employees, Deshpande said that Groupon has reduced the size of its North America sales teams to concentrate on “self-service merchant acquisition capabilities”.
It is also reorganising the company to concentrate “only on mission-critical work and relying more on external assistance”.
“In addition we’re proposing that we reduce the cloud infrastructure and supporting functions while we complete the cloud migration process,” the CEO explained.
Groupon has also announced that it will shut down its Australia Goods business, more than a decade since it was first introduced in the country in the first place.In addition, Groupon said that it will “rationalise” its real estate portfolio to bring it more in with with the hybrid model of work.
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