Groupon to cut 1,100 jobs, about 10 percent of work force
Sep. 22, 2015
NEW YORK (AP) — Groupon is cutting 1,100 jobs in the coming year, roughly 10 percent of its workforce.
The e-commerce and online deals company said in a blog post Tuesday that the cuts are mainly in its international business. Having already closed its operations in Greece and Turkey, Groupon said it is also leaving Morocco, Panama, the Philippines, Puerto Rico, Taiwan, Thailand and Uruguay.
The Chicago company said it wants to focus its money on energy on fewer countries.
"We saw that the investment required to bring our technology, tools and marketplace to every one of our 40 (plus) countries isn't commensurate with the return at this point," Chief Operating Officer Rich Williams wrote in a blog post.
Groupon Inc. said in a regulatory filing that the cuts will be essentially done by September 2016 and lead to pre-tax charges of up to $35 million, the bulk of it in the current quarter.
Shares of Groupon fell 10 cents, or 2.4 percent, to $4.07 in midday trading. The stock has traded in the range of $3.53 and $8.43 in the past 52 weeks.