Online coupon company, Groupon, on Tuesday announced axing nearly 1,100 people worldwide and closing operations in at least seven countries.
Groupon is pulling out of Morocco, Panama, The Philippines, Taiwan, Thailand and Uruguay as well as Puerto Rico, according to a blog post from the company. “We saw that the investment required to bring our technology, tools and marketplace to every one of our 40+ countries isn’t commensurate with the return at this point,” wrote chief operating officer Rich Williams.
The company had also recently sold a controlling stake of its India unit to venture capital firm Sequoia.
Groupon will primarily cut jobs from the international team which got the deals together and customer service.
Groupon was once at the forefront of sites which revolutionised local commerce by offering subscribers heavily discounted deals and opening up avenues for local businesses to more customers.
However, customer fatigue caught up with the massive number of deals from the company along with businesses tied to Groupon assessing their expenditure to be more than their sale.