Groupon Prepares To Jettison 500 Jobs As Costs Weigh On Business: What You Need To Know

Groupon, Inc GRPN announced the second phase of its restructuring in a new SEC filing.
It will involve the global downsizing of 500 employees, with most of these reductions likely to occur by the end of the second quarter of 2023.
Groupon said expects to record total pre-tax charges of between $10 million and $20 million.
These pre-tax charges will primarily relate to employee severance and compensation benefits.
The payroll actions under the second phase of 2022 will likely save $70 million annually.
The non-payroll actions will likely save an additional $30 million in annualized costs.
On Jan. 25, 2023, the board approved the second phase of the ompany’s multiphase restructuring plan announced in August 2022.
In November, Groupon reported a third-quarter revenue decline of 33% year-on-year to $144.39 million, missing the consensus estimate of $156.42 million.
Local revenue was $127.9 million, down 27% year-over-year.
The earnings loss of 68 cents per share missed the consensus estimate of a 53-cent-per-share loss.
GRPN Price Action: Groupon shares were trading 0.72% highier to $8.41 premarket Tuesday.