By Connor Hart

Groupon will lay off nearly a quarter of its employees, cutting up to 400 positions globally in a restructuring the company said will advance its previously disclosed strategy to rebuild as an AI-native company.

The online marketplace company said Tuesday it expects to record between $7 million and $13 million in pretax charges tied to the restructuring, the majority of which it anticipates will stem from employee severance and compensation benefits.

Most of the job cuts are expected to occur by the end of the third quarter, Groupon said.

Groupon estimated the layoffs will result in up to $25 million in annualized cost savings. The company expects to realize $10 million to $12 million worth of the savings this year and plans to reinvest about half of that money toward marketing, artificial-intelligence infrastructure and talent density.

The company continues to evaluate other cost-reduction and automation actions, it added.

Groupon had 1,734 total employees as of Dec. 31, according to the most recent headcount available in filings with the Securities and Exchange Commission.

As a result of the restructuring efforts, Groupon lifted its full-year outlook for adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--to between $75 million and $80 million, up from between $70 million and $75 million.

Shares rose 4.5%, to $19.79, in premarket trading.

Groupon separately said its chief operating officer, Jiri Ponrt, notified the company of his decision to resign, effective July 10.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 26, 2026 08:42 ET (12:42 GMT)

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