Groupon announced that it is eliminating about 1,1000 jobs over the coming months. The cuts will mostly take place in its International Deal Factory and Customer Service. The company says it has streamlined its operation in these (and other) areas and that it is now able to do more with less.
In addition to the cuts, it is actually pulling its business out of some countries including Morocco, Panama, The Philippines, Puerto Rico, Taiwan, Thailand, and Uruguay. It recently exited Greece and Turkey as well.
Groupon COO Rich Williams writes in a blog post, "Two years ago, we started the ambitious process of unifying our global technology platforms, tools and processes. This One Playbook initiative was designed to help us replace years of technical debt and disparate operations with the products, tools and processes that drive our North American business. Our goal was to set the stage for Groupon’s next chapter–as a global company, with more leverage and efficiency in our core operations, and a stronger platform for growth. It’s been a huge undertaking, and we still have work to do, but our Operations teams, Engineering teams and many, many others have made amazing progress. Simply put, we are a stronger, faster Groupon today because of this work."
"We’re also now in a position to realize the efficiencies we’ve been working so hard to gain, to further improve the way we operate around the world and — most importantly — continue to channel more and more of our resources toward long-term growth," he adds. "Practically, this means we’re taking some broad restructuring actions to better focus our resources and streamline our international operations."
He goes on to discuss how Groupon has evolved from a deals company to an ecommerce platform, noting that its operational model has to evolve along with that.
You can find an SEC filing from the company here, which notes that in connection with the restructuring, the company expects to record pre-tax charges of up to $35 million, including $22 million to $24 million in Q3.
Image via Groupon