Groupon to cut 2800 employees

Groupon expects to lay off or furlough about 2800 employees, in part because of the economic toll the coronavirus pandemic is taking on the US-based deals company.

Most of the terminations should be complete by June, according to a filing with the US Securities and Exchange Commission.

The company will continue to evaluate its costs, including additional lay-offs.

The board of directors has also adopted a shareholders rights plan to defend itself against any bids to take control of the company.

The deals company said on Monday that the rights plan, commonly called a “poison pill,” has not been adopted in response to any specific takeover bid.

Instead, the board believes it will protect shareholders interests amid the market volatility caused by the coronavirus pandemic.

The company, which launched more than 11 years ago with a two-for-one pizza deal at a Chicago bar, was already facing hurdles.

It ousted its CEO last month after reporting a disappointing fourth-quarter performance and plans to reduce costs.

Groupon shares were trading at 87 US cents on Monday morning, down about 70 per cent since January 31.

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