CHICAGO - Chicago-based Groupon is laying off 500 employees, the company announced Monday.
The decision to lay off nearly 15% of its global workforce comes as the company aims to "streamline our cost structure," said Kedar Deshpande, CEO of Groupon.
"Put simply, our cost structure and our performance are not aligned. In order to position Groupon to successfully execute our turnaround plan, we have to lower our cost structure. Over the last three months the senior leadership team has been challenging our current processes and automating how we work, both with an eye toward taking costs out of the business and improving our productivity," Deshpande said in a statement.
Groupon's headquarters is located at 600 W. Chicago Avenue.
The Chicago Tribune reports that 293 positions at the headquarters are impacted by the layoffs.
On Monday, an earnings report revealed that Groupon saw a $90 million loss during the second quarter.
"For those of you whose roles are impacted today, we’re sincerely grateful for all of the contributions that you have made and want to do our best to support your success in the next steps of your career. For certain employees in International, you will be notified of our proposed changes and will enter into a consultation phase over the coming days and weeks," Deshpande said.