Groupon is the latest company to announce significant layoffs as a result of the economic downturn.
According to TechCrunch, Groupon laid off approximately 15% of its 3,416 employees, or 500 individuals. The move impacted a wide array of departments, including sales, recruiting, engineering, merchant development, product and marketing.
“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.
Deshpande said the layoffs will help the company achieve a positive cash flow by the end of 2022.
In a letter to employees, Deshpande said the company would be focusing on “self-service merchant acquisition capabilities” and that the reorganization would allow it to focus “only on mission-critical activities and leaning on more external support.”
The shift in focus will also impact the company’s cloud strategy.
“In addition, we are proposing to reduce cloud infrastructure and support functions as we wrap up cloud migrations.”