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Groupon Is Planning To Cut 1,100 Jobs, Exit Seven Countries

Forbes logo Forbes 22-09-2015 Lauren Gensler, Forbes Staff
© The Groupon logo inside the online coupon company’s offices in Chicago (AP Photo/Charles Rex Arbogas...

Groupon is planning to slash 1,100 jobs over the next several months as it restructures its international operations, the Chicago-based company said on Tuesday.

The job cuts amount to 10% of its workforce and will be concentrated in its customer service and international deals factory divisions, according to a company blog post.

Groupon is also exiting from some countries altogether, namely Morocco, Panama, the Philippines, Puerto Rico, Taiwan, Thailand and Uruguay. This follows its recent decisions to leave Greece and Turkey.

“We believe that in order for our geographic footprint to be an even bigger advantage, we need to focus our energy and dollars on fewer countries,” said chief operating officer Rich Williams. “So, we decided to exit a number of countries where the required investment and market potential don’t align.”

In connection with the job cuts, and specifically employee severance and compensation benefits, Groupon expects to record pre-tax charges of up to $35 million. It said cost savings from the restructuring would be “immaterial” this year and savings in future years would be primarily funneled back into the business.

In recent years, Groupon has been trying to turnaround its business and move away from its origins as a daily deals site.

Shares of Groupon dipped 2% to $4.10 on Tuesday. They have halved in value this year and are down 41% over the last 12 months.

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