Groupon to cut about 1,100 jobs worldwide1 min read . Updated: 22 Sep 2015, 08:20 PM IST
The company expected to complete the job cuts by September 2016
Bengaluru: Groupon Inc, the operator of daily deals website groupon.com, said it would cut about 1,100 jobs globally as it restructures operations, mainly outside North America.
The company, which had about 11,800 employees globally at the end of December, said on Tuesday that it expected to complete the job cuts by September 2016.
Groupon said it expected to incur pretax charges of up to $35 million, including $22 million-$24 million in the third quarter, related to the job cuts.
Groupon, once the leader of the fast-growing online coupons market, has been struggling to attract customers and boost sales due to stiff competition from smaller companies.
Attractive deals from online marketplaces operated by companies including Amazon.com Inc and eBay Inc have also hurt Groupon.
Groupon said in April it would sell a 46% stake in its South Korean business as part of its turnaround efforts.
The company said any cost savings from the restructuring actions were expected to be “immaterial" in 2015. Groupon said it would reinvest cost savings in subsequent years in the business.
Groupon’s shares were down about 1% in early trading. Reuters