Groupon to Cut 400 Jobs, Boosts EBITDA Outlook; COO Resigns
GRPN has more than doubled off its 52-week low of $9.17.
Summary
Groupon announced a significant restructuring, cutting up to 400 jobs, which is nearly a quarter of its workforce. This move is expected to generate up to $25 million in annualized cost savings and led the company to raise its full-year Adjusted EBITDA guidance to $75M-$80M. The Chief Operating Officer also resigned, effective July 10. This follows an 8-K filed earlier today and expands on a previously announced 15% headcount reduction plan from the Q1 10-Q, signaling a more aggressive push for profitability.
At the time of this announcement, GRPN was trading at $19.90 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $719M. The 52-week trading range was $9.17 to $43.08. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.