Written by: Keith Tully
Published: 23rd September 2015
Groupon has said it will cut 1,100 jobs from its international workforce over the course of the next 12 months as it moves forward with a reorganisation of its business.
The provider of offers on consumer-facing daily deals has also announced that it will be closing its operations in seven countries, having already pulled out of Greece and Turkey earlier this year.
Most of the intended job cuts are to come from within the company’s customer service and operations departments, which currently cover activities in more than 40 different countries.
“Over the next several months we will eliminate approximately 1,100 positions, primarily in international Deal Factory and Customer Service [departments],” the company said in a blog post.
“Alongside this process, we’ve also taken a close, honest look at where we do business. We saw that the investment required to bring our technology, tools and marketplace to every one of our 40+ countries isn’t commensurate with the return at this point.”
Having been founded in 2008, Groupon has scaled up dramatically with the aim of becoming a “global company” over the course of the past several years.
The Chicago-based company floated on the NAZDAQ stock exchange in 2011 with its shares initially traded at a level which valued the business at around $12 billion.
Although still with a large presence in multiple markets worldwide, including in the US and the UK, Groupon has been faced with strong competition for customers and revenues from its locally-targeted daily online deals.
There have also been repeated claims that the local businesses that do deals with Groupon around the world struggle to make any profits or to cover the costs involved in working with the company.
For its part, Groupon has emphasised the importance of continuing to develop and unify its technology platforms as a means of ensuring operational efficiencies and the future sustainability of its international business.
“Just as our business has evolved from a largely hand-managed daily deal site to a true E-commerce technology platform, our operational model has to evolve. Evolution is hard, but it’s a necessary part of our journey,” the company said.
6th July 2020
Companies in England could soon be getting payments of £1,000 to hire young people as trainees as part of an effort to revitalise the economy in the wake of coronavirus.Read More
1st July 2020
The impact of coronavirus is taking its toll on a growing list of large companies and major employers.Read More