Groupon Inc (NASDAQ:GRPN) Struggling With The Effects Of Latest Deal; Announced 1,100 Employees Lay Off

Groupon Inc (NASDAQ:GRPN) recently announced that it shall be slashing 1,100 employees from the company at different positions, in wake of the crumbling international business. The company announced that it is looking forward to a complete overhaul of its business, which is why almost 10% of the employees working there. However, the investors are still not very happy with the company because ever since it filed for a deal regarding sale of its stake in Ticket Monster, the shares have fallen by 8%. Also, the quarterly revenues have been declining on a YoY basis since 1H 2015.

Groupon struggling to make it through the rough path

Not only this, ever since Groupon pushed out the former CEO and founder, Andrew Mason, the shares of this company have performed much below the level in the market. In a bid to make it through the storm, Groupon has announced this latest decision, which according to the market experts, is totally futile. The restructuring decision will not help in pushing the profits. Apart from this, the investors might think that by selling its services to the local business, Groupon is going the labor-intensive route.

Groupon employs a huge sales force, most of which targets small merchants. The result of this is that Groupon has generated just $69,000 in revenue in Q2 2015, while at, Inc. (NASDAQ:AMZN), this figure stood at $127,000.

At present, the company has projected that its annual revenue shall remain flat in contrast with the year gone by.


It seems that the plunging shares of the company are not going to make a comeback until and unless Groupon is ready to offer growth. Therefore, there has to be a knack of innovation and efficiency as far as boosting the health of stock is concerned. What’s gone is gone, but in the times to come, Groupon shall have a bigger responsibility to make its investors merry, lest it suffers at the degraded yearly revenue.

About the Author

Erica is a graduate of New York University’s school of Journalism. She joined US Markets Daily as a general assignment reporter in January of 2008.

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