The daily deals provider Groupon said Monday it will lay off or furlough 2,800 workers through July 2021, or about 40 percent of its workforce. Most of the cuts will be made by this summer, the company said in a regulatory filing.
Starved of its business base with local merchants who have been shut down by the coronavirus, Groupon said its overall attack on expenses will include cutting top executives to “flatten the organizational structure.” The company employs about 1,600 at its headquarters in Chicago.
“The temporary closure of businesses including restaurants and bars, event venues, and spas, resulted in a material deterioration in the company’s performance in March 2020,” the company said in its filing with the Securities and Exchange Commission.
Taking note of volatility in its share price, Groupon also said its board has adopted an anti-takeover strategy commonly called a “poison pill” that’s triggered if one investor gains at least a 10% interest in the company. The plan gives existing shareholders the right to buy more stock at a discount, thus diluting the stake of the potential buyer.