The layoffs, while substantial, aren’t as large as the cuts Groupon made to its workforce in 2020.
According to Statista, 22.2 million visitors to the company’s site purchased at least one offer in Q1 2022, down from nearly 54 million in Q4 2014. Over the past few years, the number of Groupon shoppers has fallen sharply. It’s a hard time to be a growth-stage startup. Still, e-commerce tailwinds have changed as consumer spending changes in reaction to the market downturn. A spokesperson from Groupon said that it does not view Rakuten and Honey as competitors because the companies are more focused on physical products, while Groupon is focused on experiences and services. All the platforms make money from affiliate fees and revenue-share partnerships, meaning the more competitors, the bigger the fight for customer acquisition. Rakuten and Honey, which sit on consumers’ browsers to scour the internet to show related deals, have grown into massive companies. Finally, Groupon said that it will “rationalize” its real estate footprint to be more in line with hybrid work.Ĭoupon-finding Groupon has grown to have steep e-commerce competition since its founding in 2011. In a letter to staff, Deshpande said that Groupon is reducing its North America sales teams to focus on “self-service merchant acquisition capabilities.” It is also re-organizing the company to focus “only on mission-critical activities and leaning on more external support.” “In addition, we are proposing to reduce cloud infrastructure and support functions as we wrap up cloud migrations.” Groupon is also closing its Australia Goods business, more than a decade after launching there in the first place. The chief executive says that the layoffs, as well as a reinvestment in marketing and initiatives that drive customer purchase frequency, will set the company up to generate positive cash flow by the end of 2022. “Our overall business performance is not at the levels we anticipated and we are taking decisive actions to improve our trajectory,” CEO Kedar Deshpande said in a statement provided to TechCrunch. Groupon confirmed the layoffs to TechCrunch after the publication of the story.
The reduction impacted workers in teams including merchant development, sales, recruiting, engineering, product and marketing. Chicago-based Groupon today laid off more than 500 of its employees - 15% of its 3,416-person headcount - according to posts from former employees on social media.
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