Ecommerce marketplace Groupon has cut more than 500 employees or 15 percent of its 3,416 staff.
The layoffs hit employees in teams such as merchant development, sales, recruiting, engineering, product development, and marketing.
CEO Kedar Deshpande said: “Our overall business performance is not at the levels we anticipated and we are taking decisive actions to improve our trajectory.”
He says the cuts and reinvestment in marketing that push the purchase frequency will enable the business to achieve growth in cash flow by 2022.
Deshpande wrote to staff to tell them upon is scrapping its North American sales teams to focus on “self-service merchant acquisition capabilities.”
It is also restructuring the firm to concentrate on “only 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 has also cut its Australia Goods business, well over a decade after it initially launched there.
Finally, the online store company announced that it will “rationalize” its real estate presence to facilitate hybrid work.
Since its inception in 201, the coupon-finding company has expanded to face stiff e-commerce competition.
Over the past few years, the number of Groupon shoppers has declined dramatically
While significant, the layoffs are not as severe as those made by the firm in 2020.
In April of that year, the Chicago-based company said that it will cut or furlough 2,800 employees because of the COVID-19 pandemic.
Following the restructure, Groupon scaled down its products category as it transitioned to a third-party marketplace model, with merchants handling fulfillment and returns.